Russian cbank launches extra liquidity aid for banks Sep 1

MOSCOW, Sep 4 (PRIME) -- The Russian central bank introduced an additional mechanism to provide liquidity aid for banks in trouble from September 1, the authority said in a statement on Monday.

“The Central Bank of Russia has decided to introduce an additional mechanism of liquidity provision from September 1, 2017. Banks experiencing temporary troubles with liquidity can apply for it when run out of other sources of borrowing, including in the framework of the Central Bank of Russia’s standard means,” the authority said.

The mechanism is a Russian equivalent of a liquidity assistance mechanism widely used on the international level. Decision on whether to provide aid will be based on systemic importance and financial stability of an applicant.

Funds will be provided in rubles for up to 90 calendar days. The interest rate will amount to the key rate plus 1.75 percentage points.

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