MOSCOW, October 20 (RIA Novosti) - More than 80 Russian banks received loans worth 383 billion rubles ($14.7 billion) on Monday in the first liquidity auction not to require any security from banks, First Deputy Prime Minister Igor Shuvalov said.
The auction held by the Central Bank offered loans to 82 or 83 banks with strong credit ratings at an average weighted rate of 9.89 % per annum.
The Central Bank's liquidity auctions are expected to replace the auctions held by the Finance Ministry, which provided liquidity to a small number of banks, and help the country's banking system cope with a shortage of cash amid the ongoing global financial crisis.
The global credit crunch, sparked by the subprime mortgage crisis in the United States, quickly spread to Asia and Europe leading to record losses on global financial markets and a worldwide liquidity shortage.
