On interest rates on the Bank of Russia specialised refinancing instruments

On 23 March 2018, the Bank of Russia Board of Directors decided to revisit its approach to interest rate setting for a number of specialised refinancing instruments. This decision was made as part of the strategy for a phased abandonment of Bank of Russia specialised refinancing instruments taking into account the Bank of Russia’s compliance with its previous obligations and the key rate approaching a neutral level.

1. Effective 26 March 2018, the Bank of Russia set interest rates equalling the lower of the two values (6.50% p.a. or the Bank of Russia key rate) for the following instruments:

loans secured by the pledge of receivables on loan agreements entered by JSC SME Bank with credit institutions or microfinance organisations and which are targeted for lending to small and medium enterprises;

loans secured by the surety of JSC Russian Small and Medium Business Corporation;

loans secured by the pledge of receivables on loans extended to leasing companies;

loans secured by the pledge of receivables on loan agreements secured by insurance agreements of OJSC Export Insurance Agency of Russia (OJSC ‘EXIAR’),

Thereby, interest rates on the said instruments have been maintained at 6.50% p.a.

2. Effective 26 March 2018, the interest rate on Bank of Russia loans secured by the mortgages issued under the Military Mortgage Programme has been reduced to 7.25% p.a.

3. Effective 26 March 2018, the interest rates on loans secured by the pledge of receivables on loans extended to fund investment projects and loans secured by bonds placed for investment project funding and included in the Bank of Russia Lombard List have been reduces to 6.25% p.a.

This decision applies to the investment projects selected before 1 January 2016.

The reference to the Press Service is mandatory if you intend to use this material.