Regulator gift

The Central Bank expands the possibilities of refinancing banks

The Bank of Russia plans to increase the possibilities for refinancing banks. It is assumed that the regulator will issue loans secured by loans that are secured by government guarantees or issued to municipalities of Russia. The Central Bank also plans to refinance loans of the second quality category. The innovations will largely affect state-owned banks, but liquidity injections should have a beneficial effect on the entire banking system.

The possibility of refinancing secured by loans secured by state guarantees is discussed in the draft changes to the procedure for providing loans to banks, published on the Central Bank website. The document establishes that the person who is jointly or subsidiarily liable for refinanced loans and bills may be Russia. As you know, the mechanism of state guarantees began to operate in June, after the State Duma adopted a law on accelerating the execution of these guarantees. Now, if a strategically important company defaults on a loan, the state undertakes to pay 100% of the outstanding principal within 70 days. The budget for 2009 provides for state guarantees of 100 billion rubles. for defense industry enterprises and by 200 billion rubles. for loans to other organizations. “It is obvious that state banks will have to increase the volume of lending primarily at the expense of strategically important enterprises,” notes Olga Belenkaya, deputy head of the analytical department of Sovlinka. “This means that they will mainly use the opportunity to refinance under this item.”

The second type of loans, against which it is expected to receive refinancing from the Central Bank, are loans issued to municipalities themselves or under their guarantees. Previously, as is known, only a subject of the federation or an organization that met the requirements of the Bank of Russia could act as such a guarantor. The draft clarifies that if another person is jointly or subsidiarily liable with the borrower for a loan or bill, then the value of the security that is taken as security for refinancing is taken equal to the part for which the borrower is responsible. “This step is quite logical, because municipalities have difficulties with financing due to the crisis, and their budgets are often in a deplorable state,” says Ms. Belenkaya.

In addition, the Central Bank plans to simplify refinancing secured by loans issued to organizations formed or reorganized in accordance with laws or regulations of the President or Government of Russia. Thus, the regulator intends to allow refinancing if such companies have been operating for at least a year. Other organizations will continue to have a minimum period of three years. The Bank of Russia may also allow it to attract loans secured by loans of the second quality category issued to agricultural and fishing enterprises, as well as hotels and restaurants. These are non-standard loans with moderate credit risk. Let us remind you that now the Central Bank refinances only on the security of loans of the first quality category issued to industry companies. “This is a local measure, it will help banks mainly with state participation, which work closely with these industries,” sums up Igor Zhigunov, Deputy Chairman of the Board of the City Mortgage Bank. The top manager generally assessed the regulator’s initiative positively, noting that these actions will bring additional liquidity to the banking system.

Georgy VORONKOV