The Bank of Russia extends for the first quarter of 2024 the non-application of the PCR limitation on consumer loans and certain types of loans (15.12.2023)

The Board of Directors of the Bank of Russia has decided to extend for the first quarter of 2024 the non-application of the full loan-to-value (FVV) restriction:

  • for credit organizations — for all categories of consumer credits (loans);
  • for credit consumer cooperatives, agricultural credit consumer cooperatives — for all categories of consumer loans;
  • for microfinance organizations — for categories: consumer loans, obligations under which are secured by mortgage; POS-loans.

On other categories of TCOP microfinance organizations and on all categories of TCOP pawnshops, restrictions remain. The TCOP may not exceed the lowest of the following values: 292% per annum or the average market value of the FCR for the respective category of consumer loan, calculated by the Bank of Russia and applied in the respective quarter, by more than one third.

This decision will make it possible to prolong the effect of the current (until 31.12.2023) measure on non-application of the restriction of the PSC, namely:

  • will preserve the ability of creditors to determine the terms of granting consumer credits (loans) (rates) with taking into account changes in market conditions;
  • will contribute to the effectiveness of the transmission mechanism of monetary policy;
  • allow to limit pro-inflationary risks

Banks’ lending at high rates will be constrained by higher macroprudential mark-ups on such loans. Also, the statutory requirement, common for all lenders, that the interest rate on a consumer credit (loan) agreement may not exceed 0.8% per day, remains in force.

An interest rate on a consumer credit (loan) agreement may not exceed 0.8% per day