Unsecured Loans Term to Increase

The Central Bank will increase the term of unsecured loans to banks to one year, Prime Minister Vladimir Putin said, Interfax reported.

The government and the Central Bank agreed on the increase Monday. Putin said legislation regulating the Central Bank must be amended to allow for the longer term.

The Central Bank has also cut limits on collateral-free loans for 34 out of 136 banks eligible to take part in auctions, head of the banking supervision department Alexei Simanovsky told RIA-Novosti on Monday.

The measure comes after repeated warnings from the Central Bank and the government that banks that use state aid to buy foreign currency will be punished. Simanovsky did not specify which banks were affected.