On extending the terms of Bank of Russia’s secured loans provided under standing facilities

Starting from 30 June 2014 the Bank of Russia decided to increase from 365 to 549 days maximum terms of liquidity provision under the following standing facilities: loans secured by non-marketable assets or guarantees, and loans secured by gold.

The Bank of Russia kept interest rates on the operations mentioned above at 9.25% and 9.00% per annum, respectively. Also, for loans for 2 to 90 days a fixed interest rate will be retained, whereas loans for 91 to 549 days will be provided at a floating interest rate linked to the Bank of Russia key rate.

This decision will provide credit institutions with broader opportunities to manage their liquidity, including the maturity of their liabilities, and enhance the impact of interest rate policy on the economy, as the Bank of Russia key rate’s movements will be reflected in the cost of funds previously provided to credit institutions by the Bank of Russia.

Loans secured by non-marketable assets or guarantees are provided in accordance with the Regulation No. 312-P, dated 12 November 2007 „On the provision of loans secured by non-marketable assets or guarantees by the Bank of Russia to credit institutions”. Loans secured by gold are provided in accordance with the Bank of Russia Regulation No. 362-P, dated 30 November 2010 „On the provision of loans secured by gold by the Bank of Russia to credit institutions”.

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