Financial Market Operations

During the first six months of 2011, foreign currency liquidity remained stable. With the goal of increasing the share of long-term liabilities in our overall foreign currency liability portfolio, Sberbank issued Eurobonds for the total value of USD 1 billion and raised a syndicated loan in the amount of USD 1.2 billion in the second half of the year. These efforts, along with foreign currency deposits from customers, allowed us to reduce the volume of foreign currency repo transactions by almost USD 1.4 billion. The surplus liquidity in foreign currency was deposited with leading Western banks and then used in swap transactions to maintain Ruble liquidity.

Surplus Ruble liquidity with a downward trend prevailed for the better part of the year. Sberbank invested surplus Ruble liquidity by participating actively in interdealer reverse repo transactions and interbank lending activities. In the fourth quarter, Ruble liquidity shrank sizably, mostly due to lending transactions. To restore liquidity, Sberbank raised capital on the interbank money market, entered into swap deals and raised funds from the Bank of Russia through repo transactions.


My Annual Report

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