DIA can invest in Central Bank of Russia deposits
MOSCOW. April 23 (Interfax) - The Deposit Insurance Agency has obtained the right to invest temporarily available resources from the mandatory Deposit Insurance Fund in Central Bank of Russia deposits.
Prime Minister Vladimir Putin signed the relevant resolution amending regulations for investing the temporarily available funds of government corporations.
The Finance Ministry in September 2011 published a draft resolution on investing the temporarily available funds of government corporations and government companies. The document did not envisage the investment of DIA Deposit Insurance Fund resources into Central Bank deposits.
DIA General Director Alexander Turbanov told the press in early October that he hoped this technical error, preventing the DIA from placing Deposit Insurance Fund resources into Central Bank deposits, would be resolved.
"We must always have the opportunity to begin paying compensation no later than 14 days after the date of the insured event. Placing funds in Central Bank of Russia deposits will provide yield for this and liquidity," he said.
Investment of temporarily available funds was previously done by two government corporations - the Housing and Public Utilities Reform Fund and the Russian Nanotechnologies Corporation (Rusnano, before it was reorganized into an OJSC).
Now the right to invest resources has been obtained by the DIA, Housing and Public Utilities Reform Fund, Russian Technologies, the State Olympic Construction Corporation and the city of Sochi as a winter resort, Rosatom and Rosavtodor.
The regulations set out a list of expanded assets (investment objects), including government bonds, regional bonds corporate bonds Russian company shares international financial organization papers, as well as ruble and foreign currency deposits in Russian banks.
These assets can be acquired under the following conditions: securities are traded on an organized market (for bonds), papers have a high level listing (for Russian company shares), share issuers and banks in which deposits are invested must have long-term credit worthiness ratings from at least one international agency or accredited national agency no lower than the set minimum.
The regulations prohibit investment of Deposit Insurance Fund resources that serve as one of the sources of DIA resource formation in Russian bank securities and bank deposits.