Hostages of papersthe default Reason “ the WHALE of Finans “ the financial obligations there was a risky mechanism of transactions repo - crediting by banks and investment companies each other on the security of securities. Lately market volumes repo have reached trillions roubles that in the conditions of long falling of stock market threatens with defaults and bankruptcies, experts warn.
the decision on investment bank sale “ the WHALE of Finans “ became a consequence of default to them of the obligations under transactions repo. In a similar situation it has appeared Communication - bank (yesterday`s number " see; “) . Basically transactions repo are carried out for the purpose of reception of short-term financing. The transaction repo always consists of two parts. In the first part one participant of the transaction sells to another securities (the action and bonds), in the second - redeems them back on bolshej to the price. Actually participants of the transaction repo give each other money resources on security securities. The transaction mechanism provides protection against risks. For the transaction the property right to papers passes to the creditor so in case of default of obligations by other party he can sell papers in the market and return money. Besides, the creditor accepts papers with discount - 10 - 20 % from current cost of a paper at a stock exchange. The creditor also appoints the interest rate for using money which is focused on rates of the market of interbank crediting, but can be and above on 0,25 - 1 percentage point.
However long falling of quotations has led to that risks of the banks giving money under securities, have sharply grown - in a case nevykupa their counterparts of the papers left in pledge banks could not realise pledge at the adequate price. As a result the largest operators have reduced volumes of transactions repo or have at all refused them. “ Current market prices of papers any more did not reflect their real levels “ - the analyst Rajffajzenbanka Anton Pletenev explains behaviour of banks. According to the Moscow Interbank Stock Exchange, in August in comparison with July the volume of transactions repo with group VTB has decreased with 309,3 mlrd to 221,2 mlrd rbl. According to the dealers, the largest operator in the market repo - Gazprombank has ceased to participate in transactions from the end of last week. On this information in Gazprombank refuse to make comments. Thus for August the volume of transactions repo with bank has exceeded 700 mlrd rbl., and its share makes about 20 % from total amount of transactions. As a whole from the beginning of September the day turn in the market interdealer repo was reduced with 180 mlrd to 70 mlrd rbl.
Widespread practice at transaction carrying out repo transaction prolongation is - originally having agreed about execution of the second part of the transaction, for example a week later, the parties then prolong term, and can do it some times. In this time taken as proof of a paper usually are again given in repo - already to other counterpart. Long chains of the transactions which participants entirely depended on mutual timely execution of obligations were as a result built. From - for that that the largest players have left from the market repo, other participants could not prolong the transaction. Demand for money resources has caused growth of rates and discounts. On Monday evening rates repo have jumped up from 10 % to 13 %, and level of rates in the market of interbank crediting has grown about 8 % to 10 % annual. Discounts under transactions repo have increased to 25 - 30 %. On Tuesday growth of rates in the European markets of interbank crediting with 4 - 6 % to 10 - 12 % and payments of the uniform social tax (more than 100 mlrd rbl.) Have led to the further increase of rates repo - to 20 - 30 %, dealers tell. “ banks began to close limits, and impossibility refinansirovat the debts have resulted “ the WHALE of Finans “ to default of obligations “ - mister Pletenev explains.
the Situation in which it has appeared “ the WHALE of Finans “ became a consequence of the traditional game spent by banks in the market repo, experts speak. Without having managed to prolong the transaction repo with big banks, smaller banks and investment companies have been compelled to realise maintenance at a stock exchange, experts consider. Mass realisation of the papers which are in maintenance, in the morning on Wednesday also has resulted in a stop of the auctions at stock exchanges. Continuation of the auctions, that is the further falling of quotations, would lead to the mass technical defaults default of obligations under transactions would become which reason. While the market stood, the state has directed on the market repo 60 mlrd rbl. (the text see p. 1). However the market system repo will not change in the near future that keeps risks of defaults and bankruptcies, as “ really many investment companies are not solvent “ the chief of analytical department of exchequer VTB Nikolay Kascheyev considers.