“The Central Bank of the Russian Federation from October 30 to cut rates on a number of refinancing alternatives

Moscow. 27 Oct. INTERFAX – the Bank of Russia from October 30 to reduce interest rates on specialized refinancing instruments in connection with the reduction of the key rate, according to a press release regulator.

The Central Bank on Friday lowered its key interest rate by 25 basis points to 8.25% per annum. In this regard, lending rates of the Central Bank under the pledge of receivables on loans and bonds to Finance investment projects and loans to leasing companies reduced from 7.5% to 7.25%.

Interest rate on Central Bank loans, mortgage-backed issued in the framework of the program “military mortgage”, reduced from 8.5% to 8.25%.

This remained unchanged at 6.50% the rate for Central Bank loans secured by pledge of receivables on loan agreements secured by insurance contracts of OJSC “EXIAR”, the interbank loans of SME Bank, secured by pledge of receivables and issued for financing small and medium enterprises, as well as on loans secured by guarantees of SME Corporation.

The Bank of Russia in September announced that it would gradually replace the specialised refinancing instruments on market mechanisms. The regulator did not specify the timing of the tapering of these tools, noting that it will take several years. In the first stage, the Central Bank stops increasing the limits on all the specialized mechanisms of refinancing, but will continue providing loans in the framework of the special tools.

In addition, the regulator announced that October 30 will reduce to 10% from 10.25% rate on loans provided under irrevocable lines of credit that can be used systemically important banks for the implementation of the Basel LCR standard.

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