Mandatory reserves, previously decreased as one of the anti-crisis measures, will be gradually increased | Practical Law

Mandatory reserves, previously decreased as one of the anti-crisis measures, will be gradually increased | Practical Law

Mandatory reserves, previously decreased as one of the anti-crisis measures, will be gradually increased

Mandatory reserves, previously decreased as one of the anti-crisis measures, will be gradually increased

by White & Case LLP
Published on 08 May 2009 • Russian Federation
Speedread

Speedread

The Central Bank has issued a directive gradually increasing the reserve fund amounts that Russian credit organisations are required to deposit with it. The amount will rise incrementally over the next four months.
On 23 April 2009, the Central Bank issued Directive No. 2219-U regarding the mandatory reserves for various obligations of credit organisations. The Directive entered into force on 23 April 2009.
Russian credit organisations are required to deposit certain reserve funds on non-interest bearing accounts with the Central Bank. Currently, such mandatory reserves for a credit organisation's obligations of each category (that is, those to non-resident banks in rubles or foreign currency; those to individuals in rubles; and other obligations in rubles or foreign currency) are set at 0.5%.
The Directive provides that these mandatory reserves will be gradually increased and will be:
  • 1% as of 1 May 2009.
  • 1.5% as of 1 June 2009.
  • 2% as of 1 July 2009.
  • 2.5% as of 1 August 2009.