Bank of Russia to establish differentiated risk-weight add-ons with regard to currency issuer

It is planned to differentiate add-ons for loans to legal entities in foreign currency, as well as investment in debt securities denominated in foreign currency, depending on the currency issuer (friendly or unfriendly countries). In addition, add-ons for such loans will be differentiated depending on the sufficiency of the borrower’s foreign currency earnings to fulfil its obligations (exporter or non-exporter). The existing criteria for recognising legal entities as exporters are expected to remain conceptually unchanged.

Furthermore, it is planned to exclude these requirements for the add-ons if they are:

• directly or indirectly state-guaranteed;
• aimed at financing projects implemented in accordance with international treaties of the Russian Federation.

Comments and proposals from market participants will be accepted until 21 August 2022.