New version of Terms and Conditions for Issue and Redemption of Bank of Russia Loans released

The new version of the Terms and Conditions for the Issue and Redemption of Bank of Russia Loans Backed by Securities or Credit Claims (further referred to as the Terms and Conditions) takes effect on 1 October 2021.

The document contains several innovations. In particular, if a branch of a credit institution restructured into an internal unit entrusts its correspondent sub-account to the credit institution or another branch of the credit institution, the Bank of Russia terminates the disbursement of loans to this correspondent sub-account, the repayment of loans from this sub-account, and the inclusion of non-marketable assets in the respective collateral pool. It may also remove this sub-account from the contract of participation in the operations on the issue and redemption of Bank of Russia loans backed by securities or credit claims (further referred to as the Contract).

Furthermore, in case of changes in a credit institution’s details (full company name, postal address, email, telephone and TIN), a credit institution may amend the Contract unilaterally by sending a notification to the Bank of Russia.

The new version of the Terms and Conditions eliminates the concept of ‘business day’, clarifies the collateral procedure for overnight loans, provides credit institutions with an opportunity to revoke a notification of an early settlement of a Bank of Russia loan. The document also specifies the wording of certain criteria applicable to the inclusion of non-marketable assets in collateral pools and to the checking of non-marketable assets in collateral pools.

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