Natl Welfare Fund money invested in securities down 7.9% in Oct
MOSCOW. Nov 6 (Interfax) - The amount of money from the National Welfare Fund that Vnesheconombank (VEB) has invested on the securities market fell to 136.888 billion rubles as of November 1, 2009, down 7.9% from 148.572 billion rubles on October 1, VEB said in materials.
The amount invested has declined in recent months, from 168.5 billion rubles on August 1, to 161.6 billion rubles on September 1. The trend is due partially to selling and partially to maturities and redemption offers.
VEB received 175 billion rubles from the National Welfare Fund in October last year in a five-year deposit at 7% annual interest. At the government's instruction, the bank invested the money in shares and obligations of Russian companies.
At the end of October 2009 a source in the Finance Ministry told Interfax that the ministry and VEB were working to change the interest rate on the deposit.
At that time the business daily Vedomosti, citing unnamed Finance Ministry sources, said that VEB "does not consider it worthwhile to continue servicing the deposit," and was therefore considering various options, including closing it out. The newspaper's sources close to VEB said that the bank "has received the maximum possible yield on the shares and there is no longer a need to keep money in those instruments."