OREANDA-NEWS. On November 11, 2008 ZAO Raiffeisenbank, the Russian subsidiary of Austria's Raiffeisen International Bank-Holding AG (a member of RZB Group), has signed a special agreement with the Central Bank of Russia, whereby the Central Bank will underwrite inter-bank loans issued by Raiffeisenbank by providing partial compensation for any losses incurred by the bank in Russia's inter-bank loan market. Raiffeisenbank was one of the first three major banks in Russia to sign such an agreement with the Central Bank, reported the press-centre of Raiffeisenbank.

The Central Bank's initiative is directed at supporting and strengthening the Russian Federation's financial system by providing guarantees to large banks that are fundamental to the system to cover their activity on the inter-bank loans market. The agreement entails the placement of a compensatory deposit by the Central Bank with Raiffeisenbank, in case borrowing banks are unable to meet their commitments on time or at all. Raiffeisenbank is entitled to claim funds from the deposit should a borrowing bank's license be revoked.

"We firmly believe in the huge potential of the Russian market and welcome the swift and efficient measures which the Central Bank of Russia and the Russian Government have taken to support the country's financial system", said Herbert Stepic, CEO of Raiffeisen International. "The agreement with the Central Bank of Russia marks yet another important step towards ensuring the stability of the inter-bank market. We feel very much honoured that Raiffeisenbank was selected for a key role in this strategically important process", he added.