The RF CB Has Reversed to its Former Approaches to Drawing up the Bank of Russia’s List

On 18 October, the RF CB announced that it would reintroduce, from 1 January 2011, its approached todrawing up the Bank of Russia’s List that had been effective prior to February 2009. 


It should be reminded that the debt obligations issued by the companies included in the List serve as securities against the majority of credits granted by the RF CB to commercial banks.

Just as it was before the crisis, the organizations with long-term credit ratings granted by at least one foreign rating agency at levels no lower than "B-" (Standard&Poor's or Fitch Ratings’ classification) or "B3" (Moody's Investors Service’s classification) with regard to their obligations denominated in foreign currencies will be eligible for being placed on the Bank of Russia’s List. In this connection, the organizations included in the List of System-Forming Organizations approved by the Government Commission for Improving the Stability of the Russian Economy’s Development will be struck off Bank of Russia’s List. At the same time, the obligations of system-forming organizations serving as security against the Bank of Russia’s credits as of 1 January 2011 will remain in pledge until their redemption.  

Thus the Bank of Russia undertook one more step towards "making an exit" from the anti-crisis measures designed to sustain the banking system by making more strict its requirements to the quality of securities offered against its credits, which can be estimated as a correct and timely measure. However, as the number of those system-forming organizations that are included in the List while at the same time having a significant volume of debt obligations in circulation is rather small, this measure will hardly have any serious impact on the RF national economy.  

P.V. Trunin – Candidate of Economic Sciences, Head of Monetary Policy Sector