MOSCOW, June 19 (Reuters) - The Russian central bank will provide refinancing loans for banks secured against investment projects at a floating rate determined as 1 percentage point below the central bank key rate, the bank’s Governor Elvira Nabiullina said.
“The key rate minus 1 percent - this is the rate at which we will provide liquidity to commercial banks,” she said in comments cleared for publication on Thursday and referring to refinancing that is secured against investment projects.
The refinancing is a new central bank programme that is aimed at providing cheap long-term investment finance.
The key rate is presently 7.5 percent, implying a 6.5 percent interest rate on such long-term loans to banks.
“As far as the money which will be received by end borrowers, there the rate will be the key rate plus 1 percentage point,” she added.
Nabiullina also said that the central bank supports an Economy Ministry proposal whereby the limit for central bank refinancing for one investment project would be capped at 20 billion roubles ($579.34 million).
The central bank has said that to begin with the overall limit on the volume of such loans will be 50 billion roubles.
$1 = 34.5218 Russian Rubles Reporting by Oksana Kobzeva,; Writing by Jason Bush; Editing by Lidia Kelly