Changes in regulations on Bank of Russia lending facilities

The Bank of Russia approved Ordinance No. 4801-U (the Ordinance)¹ on secured lending to optimise the procedure for bank refinancing. The new Ordinance will take effect on 1 October 2018 and replace effective Bank of Russia Regulations Nos. 236-P² and 312-P³.

In contrast to Regulations Nos. 236-P and 312-P, the Ordinance contains general provisions on bank refinancing, including the criteria borrowing credit institutions should comply with, and the list of collateral eligible for Bank of Russia lending facilities.

This procedure for Bank of Russia loan issuance and repayment will be covered in Conditions for the Issuance and Repayment of Bank of Russia Loans Covered by Securities or Credit Claims (the Conditions) which will make an integral part of a new loan agreement between the Bank of Russia and a credit institution (the Agreement). The Conditions and the Agreement template will be posted on the Bank of Russia website in August 2018.

The Agreement will allow the Bank of Russia to revise the Conditions promptly and flexibly to satisfy the needs of market participants and adjust to technological developments.

After the Ordinance takes effect, credit institutions shall enter into the Agreement with the Bank of Russia to be able to receive loans under the standard refinancing instruments. The Bank of Russia will provide enough time for credit institutions to conclude new Agreements. Credit institutions will be additionally informed of the beginning of Agreement signing.

All loans credit institutions received under Regulations Nos. 236-P and 312-P will be repaid in accordance with the terms and conditions effective as of the loan issue date.

¹ Bank of Russia Ordinance No. 4801-U, dated 22 May 2018, ‘On the Form and Conditions for Secured Bank Refinancing’, registered with the Russian Ministry of Justice on 7 June 2018.

² Bank of Russia Regulation No. 236-P, dated 4 August 2003, ’On the Procedure for Extending Bank of Russia Loans to Credit Institutions against the Collateral (Blocking) of Securities’.

³ Bank of Russia Regulation No. 312-P, dated 12 November 2007, ‘On the Procedure for Extending Bank of Russia Loans Covered by Assets or Guarantees to Credit Institutions’.

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