Returning to unsecured loans would be an extreme measure - Ignatyev
MOSCOW. Sept 27 (Interfax) - The Chairman of Russia's Central Bank, Sergei Ignatyev, believes that returning to the provision of unsecure loans for banks would be an extreme measure.
"We are preparing for the most extreme measures, including unsecured loans," he said at a briefing on Tuesday, stressing that this mechanism probably will not be needed again in the near future.
Ignatyev said that the CB, through its various instruments, provides banks with around 200 billion rubles on a daily basis. "This is a modest amount in comparison with what was provided in 2009 and we can offer [funds], using the collateral base, which the banks already have," he said.
As a result, Ignatyev said that a return to unsecured lending would not be a measure worth employing. The CB is ready to provide these loans only if several banks need to access this instrument. "If we gauge the mood among the banks and their problems. If we understand that these aren't one-time cases but an expanding situation," he said.
"The certain lack of ruble liquidity now in the banking system is now not a series problem. The CB has the necessary refinancing instruments and is ready to provide liquidity to banks in any amount needed," Ignatyev said.