Central Bank resuming one-year FX repo auctions Dec 14, raising minimum rates
MOSCOW. Nov 27 (Interfax) - The Central Bank of Russia is resuming one-year forex repo auctions December 14, the regulator said in a statement.
The minimum rate at these auctions will be 12-month LIBOR plus 3%, compared with 12-month LIBOR plus 2.5% at present.
The minimum rates at auctions for forex credits backed by claims on FX loans for a period of 365 days will be LIBOR plus 3.25%, compared with LIBOR plus 2.75% at present.
The Central Bank said that it will determine the parameters of the auctions taking into account the needs of the banking sector for foreign currency liquidity and the situation on the domestic currency market.
The next repayments in December this year of forex repo deals for 12 months could be refinanced if need be either in the framework of repo auctions for a the corresponding term, or with one-week and 28-day repo deals. "Thus, the Central Bank allows for the possibility of redistribution of total debt on forex repo transactions between the operations for a period of one week, 28 days and 12 months, allowing financial institutions to more flexibly manage their foreign currency liquidity," the Central Bank said in a statement.
A number of market participants believed that the lion's share of the December foreign currency repo auction payments were due to be made by one bank - Otkritie FC Bank.
