National Bank to offset withdrawal of Russian capital due to bank run :: Charter'97 :: News

The National Bank of Belarus (NBB) plans to offset the withdrawal of Russian funds from domestic banks driven by last week’s bank run in Russia. NBB spokesman Anatoly Drozdov declined to give the details of the measures while talking to BelaPAN on Tuesday but said some steps would be taken shortly.

Alfa Bank, Russia`s fifth-largest by assets, paid out some $200 million in just three days, while Guta Bank was forced to close temporarily last week after clients withdrew $344 million in June.

The NBB had to sell $30 million out of its reserves last week following an outflow of funds from Russian banks` correspondent accounts. Belarusian banks are still keeping some $20 million in Russia.
Mr. Drozdov described the outflow as “understandable and logical.”

“It’s certainly unpleasant, but not deadly,” he said. “It would be much worse if the money was blocked in Russian banks hit by the crisis.”
Mr. Drozdov said that the NBB has the resources to swiftly buy surplus Belarusian money on the market, quelling a possible sharp rise in demand for foreign cash.

Net foreign cash reserves at the command of the NBB and the government were together estimated at $688.7 million as of June 1.