MOSCOW, Apr 17 The Bank of Russia is unlikely to change regulation so that banks provide preferential loans for the privatization of state municipal property, Elvira Nabiullina, head of the regulator, said speaking in the State Duma.
«It's just preferential loans upon purchase … banks are unlikely to give, and we are unlikely to change the regulation here, because it is important that … loans be returned,» Nabiullina said, answering the question of whether program of cheap long-term loans for the redemption of state municipal property.
The head of the Central Bank explained that when deciding whether to issue a loan to a company that wants to buy such an enterprise, the bank will evaluate not only the desire to buy, but also the solvency of the company. It is important for banks what condition this enterprise is in, what cash flow it has, how much the loan will be returned, she added.
At the same time, Nabiullina agreed that the property that is not used or used inefficiently should be transferred to private hands.