CBR Give Out Unsecured Loans For 335 Bln Rubles At Six-Month

The Central Bank of Russia offered banks with 335.175 billion rubles in unsecured loans for six months from a proposal of 400 billion rubles at an auction on Monday.

The central bank revealed in a statement that the cutoff rate at the auction was 12%, or the minimal level.

It has been indicated that the banks will receive the funds on December 3 and must repay them by June 3, 2009.

According to the MICEX Stock Exchange, the average weighted interest rate totaled 12.49%. Thirty-one banks took part in the auction.

The Central Bank will provide 150 billion rubles in 26-day unsecured loans at a minimum of 11.5% at an auction on December 2. The minimum rate at the auction will be 11%. The banks will receive the funds on December 3 and must pay them off by December 29, 2008.

However, one bank can submit up to three bids at each auction. The minimal size of one bid is 1 million rubles.

In order to be qualified for unsecured loans, banks must have a long-term credit worthiness rating. In addition to that the Central Bank will take into account the ratings of national agencies RusRating when issuing unsecured loans.

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