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 8 September 2014, equal to 700 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”.

An increase in the maximum allotment amount (as compared to the repayment of loans on the auction day) will allow credit institutions to reduce the utilization of marketable collateral amid the seasonal growth in their demand for refinancing expected by the Bank of Russia. As a result more 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”.

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

26.08.2014 00.00.00