Russia is in the grip of an intense debate about whether the global financial crisis could affect the country’s economy. Meeting in Moscow on Wednesday, experts have been outlining the main threats to Russia posed by the credit crunch.

Leading economists and businessmen have gathered for an annual ceremony to celebrate Russia’s cream of the crop in the financial sector.

Leading economists and businessmen insist that the financial sector remains strong in Russia.

However, Gennady Melikyan, Deputy Chairman of the Central Bank, warns the shock wave sweeping the world’s markets is reaching Russia.

 “First and foremost, some banks are scaling down their lending programmes as the cost of money rises,” he said.

Some experts incline to the view that the government must provide the banking sector with additional sources of financing.  However, economists from Russia’s leading investment company, Troika Dialog, say Russia’s economy is suffering from excess liquidity.

On Thursday Russia’s Finance Ministry holds the first budget-fund auction in order to help commercial banks to cope with the liquidity crunch.