Russian Interbank Rates May Rise to 6% by Month’s End, Alfa Says
Russian banks may need to pay as much as 6 percent to borrow overnight from other lenders by the end of September because of concern that interbank rates will rise in Europe, Alfa Bank said.
“Fears of a European interbank collapse are causing concerns over foreign banks’ abilities to refinance Russian foreign debt and are fueling pressure on the ruble exchange rate,” Natalia Orlova and Dmitry Dolgin, analysts at Russia’s largest private lender, said today in an e-mailed research note.
September tax payments may reach 1.7 trillion rubles ($55.6 billion), helping push overnight banks rates to 5.5 percent to 6 percent by the month’s end, they wrote.
To contact the reporter on this story: Scott Rose in Moscow at rrose10@bloomberg.net.
To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net.
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