State Deposits $6.4Bln of Welfare Fund Cash at VEB

The country has placed 170 billion rubles ($6.41 billion) of the National Welfare Fund's money on deposit at Vneshekonombank as part of Moscow's $200 billion markets and economy rescue plan, data showed on Saturday.

The plan includes allocating 175 billion rubles this year for state purchases of shares and corporate bonds, with VEB acting as the agent and the money deposited with it until 2013.

Finance Ministry data showed that VEB has already received 45 billion rubles of such deposits.

The rescue package also allocates 950 billion rubles for subordinated loans to Russian banks, with the National Welfare Fund providing 450 billion of that via 2019 deposits with VEB.

So far, 125 billion rubles have been placed on such deposits. Both types of deposit pay the fund 7 percent interest.

The state share purchases have already had a positive impact on Moscow's bourses, helping to put them on track for the best week on record with gains of nearly 50 percent.

Including the VEB deposits, the National Welfare Fund stood at $62.82 billion, up from $48.68 billion a month ago.

The Reserve Fund, which serves as a safety cushion for the budget and is set at approximately 10 percent of GDP, totaled $134.60 billion, down from $140.98 billion on Oct. 1.

The two oil wealth funds together were worth 5.24 trillion rubles ($197.4 billion) as of Nov. 1.