The Russian central bank is encouraging the country’s ailing banks to accept losses on foreign currency mortgages in a bid to stop ruble falls from further weakening the sector. In a letter to banks dated January 23 the Bank of Russia wrote: “Due to the increased levels of credit and currency risks in financial markets, the Bank of Russia recommends credit institutions consider restructuring the mortgage loans (including fines and penalties) to individuals in foreign currencies, including the conversion of these loans into Russian rubles.” Most interestingly, the central bank recommends that the banks do not use current foreign exchange …read more
Source: Business Insider
