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Net capital inflow into Russia $13 bln in Q1 - Central Bank

Net capital inflow into Russia was $13 billion in the Q1 of 2007, the head of the Central Bank said at a meeting with the Russian president Thursday.

„In the Q1 of 2007 net capital inflow was $13 billion, against a $6 billion outflow (in the same period) last year,” Sergei Ignatyev said. „According to preliminary estimates, there was significant capital inflow in April,” he said but failed to disclose an exact figure. Ignatyev attributed the capital inflow to foreign borrowings by Russian companies to buy assets at auctions and to initial public offerings (IPO) held lately by domestic majors, including Sberbank and VTB. Last year net capital inflow hit a record $42 billion in Russia. The chief banker said capital inflow was likely to grow slower in coming months and would help monetary authorities to meet the 8% inflation target for 2007. Ignatyev also said that the Central Bank would continue its floating ruble rate policy. „We expect the ruble's real effective rate to grow 3% in 2008,” he said. (