Alexander Murychev, Chairman of the FBA EAC Board, Co-Chairman of the RSPP Committee on financial policy, discussed measures to support business amid a high key rate

Moscow hosted an extended meeting of the RSPP Committee on financial policy dedicated to the banking regulation and financial stability of companies. Alexander Murychev, co-chairman of the Committee and Vice-President of RSPP, co-moderated the discussion, which focused on the key challenges for business in the context of a controlled cooling of the economy.

In his opening speech, Alexander Shokhin, President of RSPP, said:

‘The high key rate is already having a negative impact on companies' operations. The situation with the demand for products or services is getting worse, companies are facing inaccessibility of borrowed funds, lack of working capital and difficulties with debt servicing. This is especially true for mining, trade, machine-building and light industry’.

Alexander Murychev and other participants of the meeting discussed measures that could ease pressure on business. The key topics included macroprudential surcharges, countercyclical measures, stimulating syndicated lending and regulating banking ecosystems. Particular attention was paid to the problems of the mortgage market: tightening of requirements by the Bank of Russia could reduce demand for housing by up to 75%, which would hit the construction industry and related sectors.

Alexander Murychev emphasized the need for balanced solutions that would ensure the availability of loans to businesses without threatening financial stability. A working group consisting of representatives of the Russian Union of Industrialists and Entrepreneurs and the Central Bank is already working on proposals aimed at supporting businesses.