Requirements of the Bank of Russia to credit organizations on repo transactions in foreign currency

* The Bank of Russia’s claims on credit organizations under the second part of repo transactions may be reduced by the amount of compensatory contributions and payments on securities. If the value of securities decreases below the allowable level established by the Bank of Russia, a credit organization shall pay the compensation fee in cash, which reduces its obligations to the Bank of Russia under the second part of repo transactions. When the Bank of Russia receives payments (coupon income, partial repayment of the nominal value) on securities transferred to it by credit organizations under the first part of REPO transactions, the credit organization’s liabilities to the Bank of Russia under the second part of REPO transactions are adjusted by a similar amount (i.e. these payments are accounted for as repayment of credit organizations’ debt). Taking into account the above factors, the amount under the first part of repo transactions may exceed the total amount under the second part of transactions.