According to Deputy Chairman of the Central Bank Alexei Zabotkin, addressing at the Renaissance Capital conference, a new crisis is likely, but the Bank of Russia has the necessary instruments to assist the economy and the population in this scenario.
According to Zabotkin, present anti-crisis measures are necessary, but after the crisis has passed, they must be discontinued so that the economy may resume regular development. Furthermore, these measures will stay in our arsenal, and Russia will employ them if the next crisis arises, which is unavoidable.
He believes the Central Bank’s key rate is at an appropriate level and conforms to a more stringent global monetary policy.
In March 2020, the Bank of Russia began granting financial institutions temporary regulatory exemptions in response to the coronavirus epidemic. Individuals and businesses affected by the outbreak of coronavirus illness were also given assistance. The Russian Federation’s Central Bank has repeatedly extended the validity of its recommendations.
However, the Central Bank stated at the end of March that banks’ present margins of safety are sufficient to cover any losses, and that extra extensions adopted by the regulator in the event of a pandemic are not necessary.
Simultaneously, the Russian Federation’s Central Bank agreed to extend its advice to financial institutions on loan restructuring to people and representatives of small and medium-sized enterprises that were facing a worsening financial position as a result of the epidemic. They had originally been set to expire on April 1, 2021.