ING Bank in Moscow will begin issuing in the next two weeks the U.S. equivalent of a certificate of deposit, aimed at providing a stable roost for corporate funds being transferred to new bank accounts, the Dutch bank's chief of Russia operations said.


Although interest on the certificates will be negotiable, general manager Maarten Pronk said the documents will be closely pegged to the state treasury bill and interbank currency markets.


"They will be the guiding force behind our pricing on these instruments, taking into account the difference in credit level," he said.


Many banks and investment houses are reportedly searching for ways to allow overseas clients to tap the government's high-interest, lucrative bond and T-bill market -- foreign participation in which is severely restricted despite government promises to open the market.


However, Pronk said, ING's new instrument is unrelated to such efforts.


Available in rubles and the hard-currency equivalent, the bonds will provide a secure haven for funds while Russian and foreign companies go through the process of opening new bank accounts or transferring money to a new account, Pronk said.


The instruments can also be used as a guarantee or collateral for a loan, he said. The length and size of the bonds is negotiable, with maturity dates ranging from three days to a year.


ING Bank received approval to issue the bonds from the Finance Ministry, Pronk said, adding that he believes it to be the first such approval for a foreign bank. Some Russian banks are already using similar instruments, he said.