Banks asked the Central Bank for a solution for syndicated loans due

to sanctions

Due to Western sanctions, Russian banks began to show "acute problems" in the large corporate lending market - we are talking about issuing foreign currency loans in syndicates with foreign banks, according to a letter from the Association of Banks of Russia (ADB) sent to the Bank of Russia. RBC has a fragment of the document, its content was confirmed by a source familiar with the proposals.

Banks asked the Central Bank to provide:

a “systemic solution” to situations with syndicated loans in foreign currency, when a Russian company-borrower or a bank included in the pool of creditors falls under new Western sanctions; develop a mechanism for continuing lending after the suspension of the issuance of new tranches on syndicated loans in the event that one bank fell under sanctions restrictions; promptly launch a new instrument — loan participation financing agreements, which will make it possible to raise funds for the implementation of strategic projects from various investors, including individuals with qualified status. Specifically, this proposal appears in the ADB press release on proposals to the Central Bank to support the banking sector.

"The Bank of Russia has received a letter from ADB, will consider it in the prescribed manner," - said the representative of the Central Bank.

To date, such banks as VTB, Promsvyazbank, Otkritie, Sovcombank, VEB.RF state corporation, Rossiya Bank, Novikombank (all under US blocking sanctions, which imply blocking dollar settlements), Sberbank ( a ban on correspondent accounts in the US), Alfa-Bank, Gazprombank, MCB and Rosselkhozbank (sectoral). Western sanctions that limit the attraction of financing have also extended to a number of large companies - Sovcomflot, Russian Railways (RZD), ALROSA, Gazprom, Rostelecom and RusHydro.