An expert assessed the Central Bank's plans to introduce restrictions on lending to large companies

The plans of the Central Bank of Russia (CBR) to limit lending to companies with consolidated debts of more than 2% of the total capital of the banking sector do not yet carry significant risks for most large, and even less so for small and medium-sized enterprises. Vladimir Gamza, Chairman of the Council of the Russian Chamber of Commerce and Industry (CCI) on Financial, Industrial and Investment Policy, commenting on the regulator's decision, told Izvestia on November 22.

As he explained, such a measure of the Central Bank puts the largest corporate borrowers under control and allows realistic assessment of risks. It is aimed at state-owned and other major corporations.

"In general, there are no risks for small and medium-sized enterprises. The Central Bank has strengthened regulation on the largest borrowers that have problems with profitability," Gamza emphasized.

At the same time, the representative of the Chamber of Commerce and Industry admitted that if the regulator's measures are effective, the Central Bank may make the target on smaller companies.

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On the eve of the Bank of Russia reported that it plans to establish for financial organizations macroprudential surcharges on new loans and bonds of large corporate borrowers with a high level of debt load. As specified in the regulator, those borrowers whose consolidated debt exceeds 2% of the capital of the banking sector will be considered large. Also to the companies with high debt burden will include those borrowers, whose ratio of interest coverage by operating profit is less than 3.

On November 19, Central Bank head Elvira Nabiullina said that the regulator is concerned about the possible risks of large companies' indebtedness. She emphasized that the Central Bank would tighten banking regulation.