In April, Putin gave an order requiring that all banks receiving government assistance lend out just as much as they receive and obliging them to keep lending rates no higher than 3 percentage points above the refinancing rate.In a bid to spur lending and encourage banks to give out more affordable loans, the Central Bank has cut interest rates by 200 basis points since April, sending the benchmark refinancing rate to 11 percent. It has encouraged banks to lower its rates to reflect the discount. Generic Cialis Uk Earlier this month, Central Bank First Deputy Chairman Gennady Melikyan said lenders had “reached an agreement” that no new deposits will be offered at interest rates above 18 percent beginning next month. Generic Cialis 20mg Uk Those who did not cooperate would face limited access to Central Bank cash and other funding instruments, http://www.pharmacyface.com Melikyan said.Amid the ruble’s weakness earlier this year, the bank applied a similar policy on cash and loans secured by bonds or other collateral to limit bets on the currency’s devaluation.
Analysts were not surprised by the state’s move, although some said the long term consequences would be hard to predict.”The worldwide financial system has been going through a very unusual period. Generic Cialis Uk Sales Governments have taken control of banks in many countries,” said Roland Nash, chief strategist at Renaissance Capital. “And keep in mind, Putin was saying this to Sberbank, http://www.pharmacyface.com in which the government holds a 51 percent stake.”Interests rates should reflect the risk a bank has to assume, and 14 percent might not factor in every type of customer, Tadalafil 20mg Uk Nash said.”If you’re lending to Gazprom, then of course 14 percent is too high. But if you’re lending to an IT startup out of Barnaul, then 14 percent might not be high enough,” he said.
And while capping interest rates could cut into Sberbank’s profitability, it could also bring positive long term consequences for the lender.”If you can convince a monopoly like Sberbank to go out and lend, Viagra Cialis Online Uk it could kick start the economy, which would ultimately help Sberbank in the end,” Nash said.Other market watchers said the state’s actions could have an effect that would be very different from the intended one.The government is trying to manage the crisis in “manual mode,” Tadalafil 20mg Uk Price said Natalya Orlova, http://www.pharmacyface.com chief economist at Alfa Bank. “But lower interest rates mean riskier loans, and if banks cannot reuse their money they could just reduce their exposure to the Central Bank.