National Bank to limit corporate loans’ interest rates

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April 22, 2016 18:49

A regulation that envisages limiting interest rates on corporate loans is pending the National Bank’s approval. If adopted, the interest rates on corporate loans in the banking system will be set at around 40% per annum with a downward trend. As a result, competition between banks will increase, and clients will be redistributed in favour of the state-owned banks since they have greater resource potential. It is likely that interest rates on ruble deposits for private persons will continue decreasing, and lending to the economy in the national currency will expand.