Rise In The Term Of Unsecured Loans

According to the Prime Minister Vladimir Putin, which was reported by Interfax, the Central Bank will raise the term of unsecured loans to banks to one year. These loans are collateral-free loans, which do not put any valuable asset of consumers at risk to avail the funds.

However, the government and the Central Bank settled on the increase on Monday. Putin reveal that legislation regulating the Central Bank must be amended to give permission for the longer term.

It has been revealed that the Central Bank has also slash limits on collateral-free loans for 34 out of 136 banks entitled to take part in auctions, head of the banking supervision department Alexei Simanovsky told RIA-Novosti on Monday.

In addition, the measure comes after repeated warnings from the Central Bank and the government that banks that use state assistance to purchase foreign currency will be punished. Though, Simanovsky did not indicate which banks were affected.

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