Russian banks cut company-credit rates to 11.4% - CB
MOSCOW. May 28 (Interfax) - The average weighted interest rate on up to one-year ruble-denominated credits extended by Russian banks (excluding Sberbank of Russia ) to non-financial organizations decreased to 11.4% pa in April from 11.7% in March, the lowest since July 2008 (also 11.4%), the Central Bank said.
In February-April, the average rate was reduced 2.4 percentage points from 13.8% in January, the Central Bank said. After reaching a 17.4% high in January last year, the next twelve months saw rates slide 3.6 percentage points.
The March rate indicated that the cost of borrowing had returned to a pre-crisis level; the average rate fluctuated between 11.0% and 11.4% pa in February-July 2008.
On the other hand, the average weighted interest rate on up to one-year ruble deposits by private citizens slid to 8.7% in April from 9.1% in March.
The March deposit rate was the lowest since September of 2008, when banks paid interest of 8.2%.