The Russian financial market has been hit by a liquidity crunch amid the worsening global financial situation prompted by the subprime mortgage crisis in the United States.
"The government will receive the right to use budget funds up to the sum of 175 billion rubles in 2009 to support the domestic financial market," Vladimir Putin told a government meeting.
Putin said the government had taken extra measures to strengthen the financial market. In particular, the government has allocated 75 billion rubles ($3 billion) from the 2008 budget to enlarge the equity of state-controlled Vnesheconombank, which was established last year as a national development vehicle to modernize and diversify the Russian economy and make it more competitive.
Also, 60 billion rubles ($2.4 billion) will be allocated from the federal budget to the Agency of Housing Mortgage Lending, Putin said.
