Once the Central Bank has raised the basic rate to 17%, domestic banks also intend to change its refinancing rate as on deposits and loans. Many banks claim that the work of credit institutions will be significantly more complicated.

Many Russian banks discuss the possibility of interest rate increases, citing the fact that the Bank has dramatically increased the basic rate from 10.5% to 17%. A similar solution could not be reflected on the activities of credit organizations.

Interest rates will rise as loans and contributions. "We expect to raise contributions of up to 17%" - quoted by TASS first Deputy Chairman of the Board of Sovcombank Sergei Khotimsk. The Bank also plans more essential than before, to reduce losses. He added that "this increase will lead to lower profits, but not critical for the Bank".

"The increase in the key rate of the Central Bank, no doubt, will have a severe effect on all investors in the market, as it will result in an increase in interest rates on loans and deposits. Own products MDM-Bank proper decision has already been made," said Deputy Chairman of the management Board of MDM Bank Natalia Blatov.

The results of the decisions of the Central Bank will be reflected on the whole situation in General and on each player in the market in particular. First fear is for the credit sphere. "The loans will become less readily available because banks will be forced to loans from the Central Bank under inflated cent," stated Vice-President and Director of Treasury Uber Alexander Plastinin. With all this inflated rate, according to him, "will remain for three to six months, after this period will be followed by a gradual fall.

"The level of interest rates on newly granted loans in the banks may increase and for the population. Perhaps, in the most advantageous position will be the depositors of the Bank - rate premiums will increase," said the public relations division, SKB-Bank. Rates on issued credits in accordance with law, may not increase.

"The rate increase to 17% - this is the end of the banking system," quote "Vedomosti" top Manager of one of the banks. This means that banks raise lending rates to firms with up to 20%, and for the economy of the state, this means death. Start defaults among corporate borrowers, banks have sharply, "crawl" the quality of assets, it will overlap on liquidity problems", - said the banker.

With all this, banks are struggling to exhibit protective tariffs for the sale of currency. "Are all afraid, to sell the currency nobody wants. Formally visitor to refuse foreign exchange is impossible - there will be questions from the CB, but you can turn up the course. We are currently implementing the Euro above 89. It is likely to raise more," he added.
sections: Economics, Accidents