Russian brokerage says fails to meet some obligations

MOSCOW, Sept 16 Tue Sep 16, 2008 3:23pm EDT

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MOSCOW, Sept 16 (Reuters) - Russia's mid-sized brokerage Kit Finance said on Tuesday it had failed to meet some of its financial obligations amid falling markets, signalling problems in Russia's financial sector.

"Several large clients could not meet their obligations to us, the market is falling, liquidity is scarce, therefore we could not meet some of our obligations," Kit's head Sergei Grechishkin told Reuters.

Grechishkin's comments were confirmed by Kit's press-service.

A government source who declined to be identified told Reuters the situation in brokerages, which do not have direct access to the central bank's refinancing facilities, is worse than in the commercial banking sector.

"The situation in investment firms is worse than in commercial banks," the source said. (Reporting by Gleb Bryanski and Anastasia Onegina, editing by Oleg Shchedrov)

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