Russia's VEB offers liquidity help to banks

By Darya Korsunskaya

WASHINGTON, Oct 22 (Reuters) - Vneshekonombank, the Russian state bank being remodelled to lead an economic development drive, is willing to deposit funds with commercial banks to support their liquidity, its head Vladimir Dmitriyev said.

Vneshekonombank (VEB), Russia's debt servicing agent and manager of the state pension fund, is being rebranded as the Development Bank and recapitalised to the tune of $10 billion.

But VEB cannot invest all the new funds at once and is ready to put money on deposit to help banks get over a liquidity squeeze triggered by the U.S. subprime mortgage crisis.

"We have offered our services," Dmitriyev told reporters on Sunday night in Washington, where he attended the International Monetary Fund and World Bank autumn meetings.

"The simplest way would be to place deposits at banks -- either against a pledge of certain instruments or in line with (lending) limits that we have established."

Dmitriyev named state-controlled Sberbank (SBER03.MM) and VTB (VTBR.MM) and Gazprombank, owned by gas export monopoly Gazprom (GAZP.MM), as banks that "need liquidity support".

VEB expects to receive 180 billion roubles ($7.25 billion) by the end of October from a budget stabilisation fund that gathers oil revenues. It is also revaluing its real estate portfolio and other assets by 70 billion roubles.

The Central Bank of Russia has over the last two months made available funding that has on occasions exceeded $10 billion, primarily via one-day repo auctions, to keep the banking system afloat.