Problems relating to Trade and Investment on Russia
13. Finance |
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Issue |
Issue details |
Requests |
Reference |
| (1) Inadequate Infrastructure on Financing | - While CBR employs real-time gross settlement (RTGS) systems, designated-time net settlement (5-times per day), still remains in inter-bank settlement. In effect, the fund settled at late hours is unavailable for use on the very day the settlement takes place. - Russian inter-bank settlement of only a few times a day makes it difficult to effect settlement on the same day. |
- It is requested that GOR overhauls its Finance, Banking and Monetary Infrastructure. - It is requested that GOR takes step to overhauls the financing and banking infrastructure. |
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| (2) Fund Borrowing is Difficult | - CBR stringently controls the reserve account of commercial banks, making it difficult for enterprises to secure credit line. | - It is requested that CBR deregulates the control on Private Banks. | |
| (3) Irrational Basis of Earmarking Bad Debt Reserve | - CBR demands earmarking of 21% Reserve on accommodation of funds, on which any of the following applies: (1) Stock Financing for Distributors: Grant of stock fund loan to distributors from the fund (granted as loan to customers) of which principal-and-interest is partially paid does not improve "the debt payment status", one of the decision bases for the reserve rate. In this case, the grade of the 3rd classification or less applies. (2) Car personal loan: In the case where the subject car for car loan is the subject property of stock financing for distributors, the car in question amounts to the financing employed for debt payment to other creditor. In this case, the grade of the 3rd classification, or less applies. |
- Member Firm's Subsidiary (MFS) is of the view that the financing in the circumstances described in the left column amounts to normal credit. It is requested that CBR takes steps to reconsider the reserve earmarking standard. | - CB Report Regulation No.254-P 1. Article 3.7, and 3.7.2.4, 2. Article 3.13, & 3.13.6 |
| (Improvement) - Since Elvira Nabiullina's assumption of office as Governor of CBR in June 2013, CBR has rapidly advanced its modernization including preparation of financial policy framework based on KEY RATE (currently 5.50%) newly established for main policy interest rate. |
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| (4) Local Bank Commission and Add-On Interest | - In contract for a large transaction, under the payment terms of remittance for the full amount. L/C is not usable so that pre-shipment credit risk cannot be secured. - Member firm finds it extremely difficult to take advantage of JBIC bank loan. |
- Local bank's commissions and added-on interests are too high. | |
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