Vedomosti: Central Bank considers lending to oil and gas companies in foreign currency to redirect liquidity

The head of the Bank of Russia, Elvira Nabiullina, sent a set of proposals to President Vladimir Putin to improve the conditions for financing projects in the oil and gas industry, the measures, among other things, offer loans to companies in this area in foreign currency and subsidize rates on ruble loans for them. Writes about it Vedomosti with reference to a source familiar with the initiatives of the Central Bank.

According to the publication, Ms. Nabiullina proposes to issue loans to oil and gas companies in foreign currency, since there is an increased supply of it on the market and it is accumulating in the financial system. However, this option carries risks, since the assets that are proposed to be redirected are denominated in the currencies of unfriendly countries. In this regard, it is more preferable to provide loans to strategically important companies on improved terms in rubles, the source said.

Improving the conditions for ruble loans, in particular, involves the issuance of state guarantees for loans for projects in the oil and gas sector, subsidizing interest expenses on issued bonds to development institutions (through which state institutions could provide financing), and developing a special mechanism for their prompt additional capitalization. State support mechanisms such as rate subsidies or preferential loans for companies can also be used.

On the forecasts of the Central Bank for the development of the Russian economy in the coming years – in the material “Kommersant” “We don’t need someone else’s crisis”.

Victoria Kolganova