Russia clears $86 bn rescue package for banks

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In an effort to rescue the country's banks troubled by credit crisis, Russia has approved a host of measures worth USD 86 billion, a media report said on Friday.

"Russia's lower house of parliament, the Duma, has approved a raft of measures worth USD 86 billion (51 billion pounds) to assist banks hit by the credit freeze," the ''BBC'' said in a report published online.

The Russian government would make USD 50 billion available to banks and firms that need to refinance foreign debt while the rest would be available as loans to banks, the report said.

The package is designed to restore confidence in Russian banks and revive shares, which have seen steep falls, it added.

Meanwhile, trading on Russian stock exchanges has been suspended. The trading on the exchanges were stopped after the country's key index Micex plunged over 10 per cent on Wednesday.

"The falls in Russia and elsewhere have been blamed on panic selling by global investors fearful of a deep worldwide recession," 'BBC' said.