Putin promises recapitalization of major Russian banks

President Vladimir Putin has pledged to keep the costs of borrowing down by the recapitalization of major Russian banks using debt-equity swaps and, possibly, federal budget funds. With Russian banks coming under increasing pressure to boost capital due to the economic slowdown which is eroding the quality of loan portfolios, and with major Russian companies finding it harder to raise financing from Western lenders because of the crisis in Ukraine, officials are worried that banks could react by hiking interest rates and so hinder an economic recovery. The Moscow Times