16.01.09

German Gref, the head of Sberbank, ordered the bank to cease issuing foreign currency loans to private persons for an indefinite period.

A main player on the consumer lending market, Sberbank is planning, with their clients’ consent, to transfer foreign currency loans borrowed earlier in dollars and Euros into rubles starting January 1st.

Another state bank, VTB24, proposed similar measures for the benefit of their clients. The objective of this action is to lighten the load for clients who would have to pay more (in ruble equivalent) if the dollar continues to climb, reaching, say, 30 rubles.

At the same time it remains unclear what arrangement Sberbank will use for transferring foreign currency loans into rubles and whether rates will change. According to personnel of a Sberbank office, there is hearsay that foreign currency loans will be recalculated based on the exchange rate on the day of payment, with no additional applications required and no changes to existing agreements. The re-calculation procedure will be used monthly for all payments on credits until further notice by the head of the Sberbank. This proposal was sent by the Sberbank to the Ministry of Finance.

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