Russian cenbank to halve FX refinancing facility to $25 bln in 2017

MOSCOW, Dec 27 (Reuters) - Russia’s central bank said on Tuesday it would lower the maximum amount of foreign currency funding on offer to commercial banks to $25 billion in 2017.

“The Bank of Russia established this maximum outstanding amount due to the considerable decline in demand for FX refinancing from credit institutions as compared with 2014 and taking into account the assessment of possible risks,” the central bank said in a statement.

Starting from 2014, after Russia’s banking system was cut off from global capital markets by Western sanctions, the Bank of Russia offered to provide banks with up to $50 billion a year. (Writing by Andrey Ostroukh; Editing by Peter Hobson/Andrew Osborn)