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Russia’s Central Bank to extend more support for credit institutions
The Central Bank announced that it will offer additional support for Russian credit institutions amidst sanctions. According to the regulator, the support measures will be provided until December 31, 2021.
"The Bank of Russia will allow banks not to lower the borrower’s financial rating for the purpose of provisioning for losses, if the deterioration of the financial position of the borrower occurred after February 18, 2022 as a result of sanctions,” the Central Bank informs.
Also, the regulator will allow the banks not to lower the debt service quality regardless of the financial rating of borrower as far as it concerns restructured loans. The Central Bank recommends that debts should be restructured and no penalties or fines on loans should be imposed, if the financial position of borrowers was affected by sanctions.
“The Central Bank will allow the valuation made as of February 18, 2022 to be used for the banks’ property on the balance sheet, as well as for the purposes of provisioning for possible losses on loans, in case the collateral quality belongs to the I and II categories,” the regulator added.
Also, starting from February 28, as part of countercyclical macroprudential policy, the Bank of Russia has released the accumulated buffers for unsecured consumer loans and mortgages in rubles and foreign currency loans (733 billion rubles as of February 1, 2022). The measure is introduced for an unlimited term.