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Russia to face minor liquidity problems, experts say

February 27, 2008 | RBC

Russia is likely to face slight liquidity problems, experts told RBC TV today, adding that repo rates are increasing 0.2-0.3 percent per week. While Russia still has a positive trade balance, it can see certain negative changes, as banks accumulate funds for the upcoming tax payments. However, the general situation is better than it was in the fall of 2007, analysts note. Although liquidity problems can affect the corporate bond sector, Russian shares are expected to rise further, experts say.

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