Economics
Russia to Restart Loan Program 2 Weeks After Saying It Won't
- Bank of Russia to resume FX repurchase operations from Dec. 14
- Two weeks ago, Governor Nabiullina said no need for FX repos
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The Bank of Russia will resume auctions for 12-month repurchase agreements with foreign currency, two weeks after saying there was no need to use the instrument introduced last year to help banks and companies meet debt payments at the height of the ruble’s collapse.
The central bank plans to resume operations starting Dec. 14, raising the minimum rate by 50 basis points to the London interbank offered rate plus three percentage points, according to a statement on its website Friday. The Bank of Russia will decide on the terms of the auctions based on banks’ need for foreign-currency liquidity and the domestic market situation.