Russian Central Bank introducing new criteria for including foreign currency loans of banks as collateral as part of refinancing

MOSCOW. Jan 27 (Interfax) - The Central Bank of Russia (CBR) is introducing new criteria in the terms and conditions for providing secured loans to banks, specifically that agreements on foreign currency loans, which are provided as security for the regulator, must stipulate the rights of creditors to demand payments on said agreements in rubles, the CBR said in a statement.

The corresponding amendments have been added to the terms and conditions of operations for granting and repaying loans of the CBR that are collateralized by securities or by the rights of claim as per loan agreements. The amendments are applicable as of February 6, 2023.

The amendments stipulate applying the new criteria in order to include pools of collateral of rights of claims on loans whose principal amounts are denominated in foreign currencies.

"According to the new wording in the terms and conditions, a corresponding loan agreement must contain the rights of a creditor to demand the fulfillment of the obligations, as per the agreement, in rubles," the CBR explained.