Russian central bank may issue bonds in 1–2 months

MOSCOW, Jun 10 (PRIME) – The Russian central bank may issue several dozen billion rubles worth of bonds in the next one or two months in a test mode to mop up excessive liquidity, Chairwoman Elvira Nabiullina said in a news conference Friday.

The instrument may be used to gain operating control over rates on the currency market.

“We plan to issue the bonds of the Bank of Russia, their placement in a test mode will be done in the near future,” she said. “We are ready to carry out a test placement worth several dozen billion rubles in the next one or two months to understand demand for the instrument. We expect that the structural liquidity surplus will be reached next year, which is slightly worse than we expected.”

The regulator is also studying higher regulations for reserves against ruble-denominated deposits, but it will be discussed with the banks, she said.

The central bank will restore higher risk ratios for unsecured consumer loans within the range of 25–35% of the total loan’s cost from August 1. The measure should curb consumer lending growth so that it does not contribute to inflationary risks, she said.

The regulator also does not see any risks in negative interest rates on foreign-currency deposits in the foreseeable future. Currently, interest rates on foreign-currency deposits are in the positive zone and are still attractive for households, she said.

(63.7402 rubles – U.S. $1)

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