Moscow (TASS) – The Russian government has announced a relaxation of the credit rating requirements for countries seeking loans from Moscow, as per a newly approved decree.
The amendments alter the rules for lending by Russia to foreign nations. Previously, to be eligible for a loan from Moscow, a country could not be categorized in the sixth or lower credit risk groups according to the Organization for Economic Co-operation and Development (OECD) standards.
Additionally, loans were not extended to countries with long-term creditworthiness ratings below B- from Fitch or Standard & Poor’s, or below B3 from Moody’s, TASS reported.
Under the new decree, Russia will no longer adhere to international institutions’ recommendations when extending loans to other countries. This marks a significant shift in Russia’s lending policies, potentially opening the door for more nations to access Russian funds.
Furthermore, the decree stipulates that foreign countries can now make payments on Russian state loans in any mutually agreed currency. This includes the provision for repayment and interest payment of the loans, TASS reported.
A notable aspect of the decree is the provision for payments in Russian rubles. “Payments in favor of the Russian Federation in Russian rubles, with the application of the ruble rate to the currency in which a foreign country’s obligations are expressed, as set by the Central Bank of the Russian Federation on the dates of payments, will be recognized as proper discharge of obligations by the borrower,” the document states.
Previously, foreign countries were allowed to repay loans in freely convertible currencies, including the Russian ruble. The new decree represents a significant change in Russia’s approach to international lending, potentially affecting its financial relationships with numerous countries.