Financial News at Sibos September 16, 2008A series of setbacks has raised questions over whether Moscow could rival other centres and whether the rouble could become a reserve currency, writes Jason Corcoran The credibility of Moscow's ambition of becoming a global financial centre within five years has been called into question following a summer of systemic shocks to investor confidence and the arrested development of its market institutions.Highly liquid domestic markets, strong economic growth and a position at the heart of a booming region have contributed to the rapid growth of Russia's capital markets over the past decade.The dual government of President Dmitry Medvedev and Prime Minister Vladimir Putin have a blueprint in place for building Moscow's position as a financial hub. Some institutions, especially the Federal Anti-Monopoly (FAS) commission, have grown in stature due to its recent ...

Financial News OnlineJason Corcorcan in Moscow17 September 2008 Russian brokerage KIT is holding talks with strategic investors after defaulting on its debt as analysts suggested a number of small to medium-sized bank are facing similar difficulties refinancing on the repo market.KIT, a second tier investment bank, was forced to look for a buyer after it defaulted on a repo deal. Investment banking sources said a buyer had been found and announcement would be made by close of play today.A KIT spokeswoman declined to comment and said a statement would be made at 5pm Moscow time.Analysts said KIT's problems were contagious and the state would have to intervene quickly to restore liquidity and confidence in the market.David Nangle, director of financial research at Renaissance Capita, said: "There are other banks and boutiques with exposure to repos whereby ...