Russia will not cut holdings in Fannie, Freddie.
Global Banking News - 21 August 2008(c)2005 - Electronic News Publishing - http://www.enpublishing.co.uk
Russia is not planning to raise its exposure to debt issued by US mortgage financing agencies Fannie Mae (FNM.N) and Freddie Mac (FRE.N), but will not cut it rapidly, Reuters has reported.
'At the moment we are not planning to increase our holdings. We are also not planning a sharp exit, because this is decent paper and it is bringing us decent earnings,' deputy finance minister, Dmitry Pankin reportedly said.
Russia's finance minister Alexei Kudrin had said on Tuesday that Russia has continued buying the debt of the US agencies this year, but not in sufficient quantities to replace all of the maturing paper.
At the start of 2008 Russia held USD100bn -- or over one sixth of its gold and forex reserves -- in Fannie Mae, Freddie Mac and Federal Home Loan Banks (FHLB), which have since then been reduced by around 40 percent, the central bank reportedly said.
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