The bill introduced to State Duma, which forbids banks to ratchet upward interest rates for already granted credits, Russian government found non-market one. Currently financial institution has a right to change cost of loan if it is prescribed in bank’s agreement with
borrower. Amendments to the law “On banks and banking activity”, introduced to State
Duma by the group of deputies in December, 2008, deny financial institution this
opportunity. The document extends to credit agreements with individuals.
Necessity of passing the bill deputies explained that in the peak of
crisis banks began to change unilaterally credit conditions for their
own benefit.
But Russian government asks to recall the bill, calling its provisions non-market
and supposing that adoption of this law may result to departure of foreign
banks from Russia.
The Ministry of Economic Development and Trade supported negative response of Ministry
of Finance to this bill. The reason is that adoption of the law may increase
the risks of banks and limit their activity in case of force majeure.
Deputies
are not going to recall the bill. They are going to mitigate provisions of the document.
Kommersant
Newspaper
