Russian central bank tries to reassure country

The Central Bank of Russia sought to reassure Russians on Wednesday 7 July that their financial sector was sound, saying talks had begun to rescue the first major banking casualty from the brink of collapse.

Central Bank Chairman Sergei Ignatyev said that state-owned Vneshtorgbank was in negotiations to buy the troubled Guta Bank, a day after Guta Bank suspended operations.

Ignatyev told Russia's lower house of parliament that the Central Bank board will also consider a sharp cut in the amount