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New crisis is inevitable, but Russia has tools to support economy, citizens — regulator

In March of 2020, the Bank of Russia began to introduce temporary regulatory easing for financial institutions amid the coronavirus pandemic

MOSCOW, June 23. /TASS/. A new crisis is inevitable, but the Bank of Russia has the necessary tools to support the economy, and the population, in this case, Deputy Chairman of the Bank of Russia Alexei Zabotkin said, speaking at the Renaissance Capital conference. 

"The current measures are timely as anti-crisis measures, but when the crisis is over, they must be discontinued so that the economy can continue to develop as usual. In addition, these measures will remain in our arsenal, and if the next crisis comes, and it comes inevitably, we will use this arsenal," Zabotkin said.

According to him, the key rate of the Bank of Russia is at an appropriate level and corresponds to a tougher global monetary policy.

"Therefore, the tightening of the global monetary policy will have a minimal effect on our future decisions," Zabotkin concluded.

In March of 2020, the Bank of Russia began to introduce temporary regulatory easing for financial institutions amid the coronavirus pandemic. Support measures also concerned individuals and companies affected by the spread of coronavirus infection.

The regulator several times extended the term of its easing policy. However, at the end of March of this year, the Bank of Russia announced that the banks' current margin of safety is sufficient to cover potential losses, and there is no need to further extend the easing policy. However, later, the Bank of Russia decided to extend its recommendations to financial institutions on the restructuring of loans to citizens and representatives of small and medium-sized businesses, who faced a worsening financial situation due to the pandemic. They were previously expected to expire on April 1, 2021.