On the maximum allotment amount at the credit auction for the provision of 3-month loans

The Bank of Russia set the maximum allotment amount at the auction for the provision of 3-month loans secured by non-marketable assets, which will be conducted on 13 October 2014, equal to 600 billion roubles. Other auction parameters are available in the press release “On the parameters of the auctions for the provision of loans secured by non-marketable assets at a floating interest rate for the third and fourth quarters of 2014”.

The maximum allotment amount exceeding the repayment of loans on the settlement day will allow banks to reduce the utilization of marketable collateral amid the seasonal growth in their demand for refinancing expected by the Bank of Russia by the end of the year. As a result favorable conditions for steering short-term money market rates using the Bank of Russia main operations — 1 week repo auctions — will be established.

The auction is conducted according to Regulation No. 312-P, dated 12 November 2007, “On the Provision of Loans Secured by Non-marketable Assets and Guarantees by the Bank of Russia to Credit Institutions”.

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