The Central Bank of the Russian Federation (CBR) has decided that until the end of 2023 the total cost of credit (TCC) will not be limited for all categories of consumer credits, as well as certain types of loans.
From August 16 to December 31, 2023, the TCC will not be capped for:
- credit organizations for all categories of consumer credit;
- credit consumer cooperatives for all categories of consumer credits;
- agricultural credit consumer cooperatives for all categories of consumer credits;
- microfinance organizations for consumer loans, obligations under which are secured by mortgage, and POS-loans.
Previously, due to the restrictions, the TCC could not exceed 292% per annum or the average market value of the TCC for specific categories of consumer credit (loan) calculated by the CBR, more than one-third.
The CBR believes that these measures will allow lenders to pursue a more flexible policy in adjusting interest rates on credits, loans and deposits, as well as significantly limit pro-inflationary risks.
See: Decision of the Board of Directors of the Bank of Russia dated 16.08.2023 "On Establishing the Period During Which the Limitation on the Value of the Full Value of a Consumer Credit (Loan) is Not Applicable".
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