CBR Issues Unsecured Loans
Monday, 01 December, 2008
CBR Issues Unsecured Loans for 335 Bln Rubles at Six-Month Auction; Cutoff Rate at 12%
The Central Bank of Russia provided banks with 335.175 billion rubles in unsecured loans for six months from an offer of 400 billion rubles at an auction on Monday.
The cutoff rate at the auction was 12%, or the minimal level, the Central Bank said in a statement.
Banks will receive the funds on December 3 and must repay them by June 3, 2009.
According to the MICEX Stock Exchange, the average weighted interest rate totaled 12.49%. Thirty-one banks took part in the auction.
The Central Bank will offer 150 billion rubles in 26-day loans at a minimum of 11.5% at an auction on December 2. The minimum rate at the auction will be 11%. The banks will receive the funds on December 3 and must repay them by December 29, 2008.
One bank can submit up to three bids at each auction. The minimal size of one bid is 1 million rubles.
In order to be eligible for unsecured loans, banks must have a long-term creditworthiness rating of no worse than "B-" (Fitch Ratings and Standard & Poor's) or "B3" (Moody's Investors Service).
In addition, the Central Bank will take into account the ratings of national agencies RusRating - no lower than 'BB-' - and Expert RA - no lower than 'BB++' - when issuing unsecured loans.
Source: http://www.istockanalyst.com/
