Kremlin announces new measures to ease credit crisis

Moscow, Oct 18 (UNI) The Kremlin today announced a package of measures to help Russia's economy through the credit crisis, including the use of state funds to support housing demand, agriculture projects and small businesses.

''Support for strong demand for housing will be provided by the acquisition of ready economy-class housing using state funds,'' the Kremlin said.

The government will also provide credit for developers to complete the construction of partially built housing.

Agricultural projects will receive support via large banks, a Kremlin spokesman said, commenting on Russian President Dmitry Medvedev's October 16 meeting with the Cabinet.

''To achieve this, the charter capital of Rosselkhozbank and Rosagroleasing will be increased,'' he told RIA Novosti, adding the government will increase financing for its credit programs for small businesses.

The global credit crisis has seen Russia's stock market tumble since last May, losing around 70 per cent of its value.

Earlier this month, Medvedev announced a 200 billion dollars financial rescue package for banks and other key companies, amid the country's worst financial crisis since 1998.

Russia's resource-based economy has also been particularly hard-hit by the falling oil price.

UNI XC SBA KN1825