CBR introduces preferential risk ratios for loans to protect infrastructure against attacks, effective until end of year

MOSCOW. Sept 29 (Interfax) - The board of directors of the Central Bank of Russia has authorized banks to apply reduction ratios when calculating risk for loans issued to finance projects to protect critical infrastructure against threats of aerial attacks, the regulator said in a press release.

The CBR has set the reduction ratios at 30% for investment-grade borrowers and 50% for others.

The Central Bank has also permitted the non-application of macro-prudential buffer to these loan exposures.

The decision applies to corporate borrowers, as well as regions and municipalities, and is in effect from the date of publication through December 31, 2026, inclusive.

Banks save capital when lending to these projects within the limits established for initiatives aimed at technological sovereignty and the structural adaptation of the economy. The available headroom in these categories is sufficient to provide preferential financing for both technological sovereignty and structural adaptation projects and for measures to protect critical infrastructure.

"The measures expand the capacity of banks to lend to projects to protecting critical infrastructure. In turn, implementing the projects assists in mitigating borrower credit risks and financial stability risks associated with disruptions to the operation of critical infrastructure," the Central Bank said.

The CBR could subsequently incorporate the measures into permanent regulation.