Russian banks have no money to buy government bonds. Photo: Getty Images
Russian banks currently have no free rouble liquidity to buy federal loan bonds, which Russia's Ministry of Finance uses to cover the budget deficit.
Source: Taras Skvortsov, Vice-President and Chief Financial Officer of Russia's Sberbank, the largest state-owned banking company in Russia, as reported by The Moscow Times, an independent Amsterdam-based news outlet
Details: Skvortsov said this situation was caused by an outflow of cash from banks, which reached about RUB 2 trillion (US$25 billion) since the beginning of the year and created a liquidity shortage in Russia's banking system.
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