Dear Readers,

As the general cliche of crisis going on, one should notice the positive signs that reveal small indicators of the recovery when it comes to emerging markets like Russia. Although the signs we would like to see might be still away from the desired picture imagined, as we all aware small steps are being taken and all left after gaining the confidence level of market is to wait to see the pieces of chain are functioning properly once again. But as the new rules would be expected, it falls into every market player`s responsibility to make sure that everybody fulfills his role ethically and efficienlty as not to experience the undesired.
Having said that, please find the news below taken from emergingmarkets.me which tells us the lending of private sector banks with reasonable rates (of current times) that can revitalise loans in order to finance the real economy. Although every financial player is focusing on short term loans, it shows us that market confidence level is increasing, which would enable to real economy to find the external resources to improve itself larger.

Foreign credit is opening for Russian banks
A syndicated loan to MDM Bank was oversubscribed by more than $100m, demonstrating the increased interest among foreign investors in lending to Russian banks.
Our view: The first attempt by Russian private bank to attract foreign financing is exceeded expectations. Aiming to borrow $175mn at LIBOR+4% in the form of syndicated loan, MDM Bank received offers for USD 290m. The development shows that the external credit market is opening for Russia and for private banks particularly.
Until this event only state- controlled banks such as Sberbank, which raised $1.2bn at LIBOR+0.85% in October 2008, or VTB, which placed a CHF 750m Eurobond in July, were able to attract foreign funds. VTB is also receive to a 5-year $500m loan from Chinese state banks.
Having addressed its short-term liquidity problems, the Russian banking system still suffers from a lack of long-term funds, without which banks are generally unable to lend to businesses investing in capex, or to issue mortgages. This long-term funding issue is the next challenge Russian banking industry has to solve. We believe that external funds are the main source of long-term money.
Conclusion: We consider the news very positive for the Russian banking industry, as it proves that not only state but also private banks can borrow overseas. The opening of foreign debt markets should solve the long-term funding problem for Russian banks, which in turn should provide the economy with access to credit.