Press conference of Bank of Russia Governor Elvira Nabiullina on 3 April 2020
Good afternoon, dear colleagues
We have decided to hold press conferences every week as the situation is changing very quickly and we are promptly taking measures to support borrowers, maintain lending, and ensure stable functioning of the financial sector.
At these press conferences, I will speak on how we assess the events that occurred over the past week and how they affect financial stability, as well as provide up-to-date information on the progress of the measures implemented and announce new measures if needed.
We will also publish the analytical review ‘Financial Pulse’ where these topics will be studied in greater detail. The first issue will be published this evening on the Bank of Russia’s website.
I will start out with the situation in the economy. It has considerably altered since the last meeting of the Board of Directors on the key rate. Both internal and external conditions have changed. Many countries are implementing tight quarantine measures. This is causing a material deterioration of the situation in the global economy. Although China’s economy is gradually returning to normal after the quarantine period in the first quarter, currently this cannot offset declining demand in other economies. World GDP has materially decreased in the second quarter.
As President Putin announced yesterday, the period of non-work days that started this Monday will continue through 30 April 2020. Many regions are implementing additional restrictions on economic activity. These measures are absolutely necessary to combat the epidemic, but, unfortunately, they will inevitably entail adverse consequences for the economy. The PMI in the services sector published today evidences how seriously the restrictions are influencing the economy. We can see that the situation is getting worse, but the services sector is among the most affected industries.
We will scrutinise all information available when preparing our forecast for the next key rate meeting. The experience of other countries shows that one month of quarantine may cost the economy
Taking into account the reasons behind the economic decline, our baseline scenario assumes that negative effects will concentrate within the second quarter of this year. As the restrictions ease both in Russia and abroad in the second half of the year, the economy will return to its normal functioning.
We will build our new forecast for the next key rate meeting based on a comprehensive assessment of how the situation is unfolding. Anticipating traditional questions about our forecast, I will say right away that it would be too early to announce today any quantitative estimates as they are only preliminary and the situation is changing very quickly.
It is more important to give a qualitative estimate of potential scenarios in the economy and how economic policy measures may contribute to the materialisation of a more favourable scenario. It is essential to comprehend that we are evidencing an unprecedented shock of supply: many people and businesses have to suspend their work in the current conditions not because of poor demand, but due to the anti-epidemic restrictions. This situation has also disturbed relations and chains in production. Furthermore, the shock of supply is aggravated by the shock of demand caused by a decline in incomes and increased uncertainty about the path of recovery.
The deterioration of enterprises’ financial standing may be another negative factor. Therefore, governments in many countries are implementing measures to support businesses.
If it were only the shock of supply in the current situation, we would have a rather serious slump in the economy, but at least it would be followed by balancing recovery. However, additional demand-side factors and a potential deterioration of companies’ financial standing may make the period of recovery longer. The pace of this restoration will also largely depend on the situation in the global economy, specifically on the alignment of supply and demand in the oil market.
As expected, inflation has sped up recently. Nevertheless, annual inflation still remains notably below 4%. We will track price movements in the future. The data for the last weeks of March confirm our opinion that the observed surge in prices will be short-term and will have no secondary effects on inflation expectations. However, consequences of the restrictions for overall demand—both domestic and external—will probably last longer. This will be a serious disinflationary factor. If the situation develops under this scenario and financial markets are stable, we can see a certain potential for decreasing the key rate over the course of 2020. We will choose the right moment to start harnessing this potential.
The situation in markets is another factor requiring our close attention. The week preceding our key rate meeting was extremely stressful for world financial markets, with a severe shortage of liquidity in the global financial system. Since then, the situation has significantly stabilised. This was largely associated with the measures implemented by central banks, primarily the US Fed and the ECB, to bring liquidity back to normal levels.
In our case, we can also observe the effect of fiscal rule-based foreign currency sales—both standard sales pegged to the $42/barrel oil price and additional sales (through the Sberbank transaction) pegged to the $25/barrel oil price. As we mentioned before, these sales are offsetting declining export revenues from sales of oil, petroleum products and natural gas, with the oil price slumping below $25/barrel, and are thus contributing to the stabilisation of the market situation. It is also worth noting that yields on long-term federal government bonds have decreased, currently approximating 7%. There was a surge of yields in March, but by now it has already reversed by three fourths. Overall, we can say that the market situation has improved, although still being far from normal. In our opinion, we do not currently need any extra measures to maintain financial stability, but we are ready to employ additional instruments, if required.
Now, let’s dwell on our measures.
In the current conditions, the objective of the state policy, including that of the central bank, is to do our best to mitigate adverse effects for households and businesses, that is, to provide possibilities for the economy to return to normal as soon as possible after the restrictions are lifted, and for people — to overcome this situation with minimum losses and to also have an opportunity to resume normal life. These are the ultimate goals of the measures we are implementing.
Our policy is focusing on regulatory measures enabling financial institutions and, above all, their clients to better adjust to the situation. These are measures to encourage the restructuring of loans for the industries most seriously affected by the current situation, including small enterprises, and loans for those individuals who are experiencing a material decline in their incomes. We are implementing additional regulatory relaxations and liquidity provision measures helping financial institutions adjust and creating more opportunities for them to continue their day-to-day operations.
The law on loan repayment holidays will become effective within a few days. This guarantees that individuals may receive a
However, individuals should exercise this right conscientiously and be very prudent applying for the loan repayment holidays. These holidays are provided for six months, and individuals may apply for them on any day through 30 September 2020. But it is not allowed to receive these holidays for the second time. Therefore, it makes sense to use them only when it is impossible to service loans due to a decline in income. The loan repayment holidays do not cancel debt, but only allow for a postponement of payments that are to be made later on.
The Government will soon stipulate the procedure for calculating 2019 average monthly incomes. We recommend that, before applying for the holidays, borrowers calculate the decrease in their incomes against the last year according to this procedure, so as not to be refused pursuant to the new law.
We urge banks to arrange services enabling verification of income calculations in borrowers’ applications. Such services should be absolutely transparent and easy-to-understand for applicants and should be accessible online. The law also entitles small and medium-sized enterprises, as well as generally all companies of the most affected industries, to receive such loan repayment holidays.
Although the law has not become effective yet, a lot of banks are already making concessions to small businesses and individuals in restructuring their loans. To this end, we have eased some regulatory requirements.
The Bank of Russia has surveyed 10 major banks about the results of their work for restructuring individuals’ and SMEs’ debt over the period from 20 March to 1 April.
According to the preliminary data, these banks have received nearly 27,000 applications for amending loan agreements due to a decline in incomes caused by the spread of the coronavirus infection.
As of 1 April, the banks considered over 12,500 applications received, which is about one-half of the total number, of which 9,800 are for restructuring consumer loans and 2,700 are related to mortgage loans.
Banks have approved 2,100 loan restructuring applications from individuals (1,600 — on consumer loans and nearly 500 — on mortgage loans).
As to SMEs, they have submitted 16,000 requests, according to the information provided by the 10 major banks. Over the period from 20 March to 1 April, they considered 1,158 debt restructuring applications from SMEs, and it is important to emphasise that banks have approved 95% of the requests.
Thus, we can see that banks currently tend to approve applications from SMEs to a greater extent than those from individuals. Among other factors, this is associated with the fact that our regulatory relaxations for SMEs became effective one week earlier. And of course, we expect that the percentage of approved requests from individual borrowers will be growing after the law comes into force, as banks will not only have the right to restructure these loans, but will be legislatively obliged to do this, provided that borrowers are eligible.
We will carry out this monitoring on a weekly basis and inform you of the progress of restructuring these loans.
By the way, we can see that the surveyed banks have been approving such requests not only from borrowers of the most affected industries. If we sum up the up-to-date information from the major Russian banks, the amount of debt or the credit portfolio approved for restructuring—this is mostly a postponement of interest payments—may be preliminarily estimated to total 200 billion rubles, and banks are currently considering applications for restructuring loans totalling 560 billion rubles.
New measures
Today, we are also announcing additional regulatory measures. First and foremost, in order to support the mortgage market and provide more comfort to banks in the conditions where they are obliged to grant mortgage repayment holidays, we have decided to cancel the risk-based buffers on mortgage loans extended before 1 April 2020. Banks are suffering losses providing the mortgage repayment holidays; therefore, the release of the earlier accumulated buffers (and this is approximately 110 billion rubles) expands opportunities for banks to adjust to the situation and continue lending. We hold that banks harnessing this privilege will use the resources released to continue lending, rather than to pay out bonuses and dividends.
Our second decision approved today at the Board of Directors’ meeting is aiming to maintain the potential for lending to small businesses. The Bank of Russia is easing the requirements for the minimum rating of credit institutions from ‘AA’ to ‘A-’ for them to be eligible for the participation in the new preferential 4% refinancing programme with the 500 billion limit, including within the wage credit programme implemented jointly with the Government. Banks with such ratings will be able to receive loans under the programme without collateral. This will considerably increase the number of banks (from 31 to 64) and make the programme more accessible for SMEs.
We are also closely monitoring the situation with liquidity in the banking sector. There are currently no problems, and accordingly, there is no need in additional liquidity from the Bank of Russia. But the situation may alter, and banks may face a decline in money inflow, a disbalance between long- and medium-term funding due to the loan repayment holidays, and uneven distribution of liquidity within the system. To provide more comfort to the market, we have decided to expand the Lombard List by easing the requirements for the liquidity of securities used in transactions with the Bank of Russia, while preserving the requirements for credit quality. If needed, we are ready to further expand the Lombard List.
In the future, the Bank of Russia may employ instruments to provide liquidity for longer terms, if this is necessary, specifically by resuming long-term repo auctions and auctions of long-term loans secured by credit claims. These auctions, combined with liquidity-absorbing operations, will enable to extend the funding period in the banking sector, without affecting the Bank of Russia’s capability to achieve the operational objective of its monetary policy, i.e., the convergence of the money market rate with the key rate.
The situation with foreign-currency liquidity in the Russian market is also quite comfortable today, and there is currently no need in additional liquidity. If demand for foreign-currency liquidity increases, it may be satisfied through the FX swap offered by the Bank of Russia in the foreign exchange market on a daily basis. If needed, we are also ready to engage the already tested instruments, primarily foreign-currency repo auctions.
Next. The last topics I would like to touch upon are how the non-work weeks are affecting the operation of all financial market sectors and which measures we are promptly taking to eliminate the problem of ‘grey zones’ that have emerged.
As regards insurers’ operations, the Bank of Russia recommends that they execute compulsory motor third-party liability insurance (OSAGO) agreements without diagnostic certificates, provided that they are submitted to insurers later on, within one month after the restrictions are lifted.
In addition, the Bank of Russia will factor in that the restrictions will entail an increase in loss settlement periods, but in these circumstances it is essential that insurers do their best to protect the interests of insurance service consumers to the maximum extent possible. We will especially focus on safeguarding clients’ interests during this period.
We are also implementing measures to cushion the uncertainty and the impossibility to comply with standard periods in other markets sectors. Thus, today we are easing a range of regulatory requirements for professional securities market participants related to their obligation to calculate the liquidity coverage and capital adequacy ratios, and are extending the periods for submitting the reporting.
Collective investment market participants will also be granted regulatory relaxations postponing the effective date of the requirements for investing pension reserves and the requirement to reduce concentration limits for non-governmental pension funds and unit investment funds. We will temporarily ease the asset valuation requirements, which will entitle management companies not to revaluate securities within relevant portfolios. I would like to emphasise that absolutely all NPFs have paid in advance non-governmental funded pensions due in March. And a number of major NPFs have paid pensions for April ahead of schedule.
We have also adjusted our recommendations on the operation of financial institutions over the period through 30 April 2020.
Given that this is quite a long period of time, we are beginning to collect banks’ regular reporting, and borrowers are to fulfil their obligations to banks and microfinance organisations in accordance with the deadlines stipulated by relevant agreements.
We also recommend that financial institutions take into account whether borrowers have an actual opportunity to make payments, using primarily remote channels.
The Bank of Russia will continue to perform all its functions in full. We will suspend inspections, except urgent cases, until the restrictions are lifted. The list of the reporting to be submitted to the Bank of Russia will remain reduced.
Q&A for the Media
QUESTION from Interfax:
Has the Bank of Russia adjusted its 2020 banking sector profit forecast taking into account the market situation and the planned restructuring of loans issued to individuals and SMEs who have suffered from the coronavirus? Does the Bank of Russia have any estimate of losses that banks will incur in 2020 due to the restructuring of loans and the introduction of loan repayment holidays? What additional regulatory relaxation measures is the Bank of Russia discussing with banks?
ELVIRA NABIULLINA:
We have not yet adjusted our profit forecast to speak of any new figures or new expectations. However, we certainly expect that profits will shrink, and due to the restructuring of loans, among other things. Although the restructuring itself means that during that period interest is accrued but not paid. That is, this situation does not lead to a decrease in interest income. We understand that such restructured loans may depreciate later and it will be necessary to create additional reserves when the regulatory relaxation period is over. It may affect profits.
We will review our estimates as the situation with the pandemic, the related restrictive measures and the amount of restructuring applications develops. We will analyse the effect it will have on banks and review our assessment and how it all will affect banking sector indicators. It is too early to present any such estimates because the restructuring is still in the very early stage. Nevertheless, I would like to say that the financial system as a whole and banks are in quite a good condition at the moment — both with accumulated real capital and liquidity — so they have every opportunity to calmly pass through this period. This certainly takes into account our regulatory relaxation measures and liquidity provision, if needed.
Which additional regulatory relaxation measures are required? As you can see, we often take additional measures as the situation is unfolding. And, as I have already said, we are prepared to implement appropriate measures further on, if they are required, and announce once a week at these press conferences what we have discussed and what we consider necessary to implement. These measures may be generally aimed at expanding the list of sectors most affected by the coronavirus pandemic. However, as we can see, most sectors have already been included in this list, following the example of other countries, and with account of how the situation is developing in Russia. We will also discuss the effective period of such relaxations, if necessary and only as we receive new information.
QUESTION from TASS Agency:
One of banks has recently analysed the savings of Russian households and found out that over 63% of them do not have any. Do you agree with this estimate and what would you recommend people do during the crisis?
ELVIRA NABIULLINA:
It is true that we do not have statistical data regarding the share of households with savings. We do have survey results, they differ, but the approximate estimates are correct. It is difficult to agree or disagree with this information, because this is only survey data. Yes, many households have little savings. People’s incomes and opportunities differ; therefore, there can hardly be any recommendations that could apply to everyone. But in my opinion, it is critical not to get carried away by any impulses or emotions. We should be very prudent in our decisions on consuming or saving. The most important thing is that both the Bank of Russia and the Government are taking measures to help our people pass through this period with more comfort and return to normal life.
QUESTION from Reuters:
How adequate are the assessments of the situation by the analysts and economists questioned by Reuters whose consensus forecast puts the end-of-year key rate at 6%? Which is the main coronavirus scenario in the opinion of the Bank of Russia? How long will businesses stay closed and people remain at home?
ELVIRA NABIULLINA:
Regarding the key rate consensus forecast, I have already told you that there are various factors to consider. We see that there are pro-inflationary factors in the short-term period. They are already materialising as we speak; we are observing the quite expected short-term acceleration of price growth. However, I expect that in the long-term disinflationary factors will most likely prevail. And this means that there is room for lowering the key rate. Our using this option will depend on how the situation will unfold.
At our last meeting on the key rate, we basically did not send any signal. We gave a signal that we will consider the balance of risks but not with regard to the direction. And from this point of view, the analysts’ consensus forecast seems to be OK. However, as the situation develops, we will review all new incoming data and analyse the balance of risks when making our decision.
It is also very difficult to estimate how long the virus will affect us and how long the restrictive measures will be in place. The restrictive measures will be applied; they are absolutely necessary to limit the spread of the virus. We will base our decisions on the implemented restrictive measures and their effective period, and take them into account in our assessments. It is difficult to make any assessments in this regard yet.
QUESTION from Izvestia:
The non-work week has been extended until the end of April. Will the Bank of Russia require that banks suspend any penalties against individual borrowers until the first post-quarantine day? In the US, the regulators demand that insurers ease the criteria for payments to businesses affected by the spread of the coronavirus. What is the Central Bank’s position in this regard? Will you recommend anything to insurers?
ELVIRA NABIULLINA:
In general, we recommend that all financial institutions, financial organisations, banks and insurers do not apply fines or penalties if bona fide borrowers are actually incapable to pay or, even more so, if they have applied for restructuring.
QUESTION from the Financial Times:
How much has the Bank of Russia already spent to support the ruble? Does the ruble have a ‘ceiling’, say 80 rubles per dollar, after which you will have to use the reserves to support it? At the current level of oil prices, how much will you have to spend each month?
ELVIRA NABIULLINA:
When we perform our FX operations, whether we buy or sell foreign currency, we seek to avoid influencing the exchange rate in any way. We have a floating exchange rate, and we do not target it. Currently, we are selling foreign currency in accordance with the fiscal rule. These are regular sales based on the fact that the oil price is below the cut-off price of $40 per barrel. Moreover, we are conducting operations related to the Sberbank deal. The amount of our operations is in no way pegged to the exchange rate.
The second type of operations offsets the shortage of export proceeds from the sale of oil, petroleum products and gas when the price of oil falls below $25 per barrel. This is based on the oil price and not on the exchange rate. The exchange rate is influenced by various factors, including supply and demand in the market.
QUESTION from TASS Agency:
Is it possible that the list of sectors that will receive credit support will be expanded further? Earlier, the Bank of Russia added seven more sectors, including educational services.
ELVIRA NABIULLINA:
It is true that we are prepared to expand the range of sectors, if necessary. Currently, it is not required, but we are ready for that. As I have already said, our list of sectors that are subject to relaxations is generally consistent with the list of the most affected industries prepared by the Government. It is also largely similar to the list used in other countries that have already passed this stage of the coronavirus pandemic.
QUESTION from RIA Novosti:
One more question about FX operations. On 9 March 2020, the Bank of Russia suspended foreign currency purchases for 30 days. Will the regulator extend this period and for how long?
ELVIRA NABIULLINA:
We suspended the purchases and started to sell foreign currency because, in accordance with the fiscal rule, the oil price is now below the cut-off level. If and when the oil price exceeds this cut-off level, we will begin operations to buy foreign currency, in line with the fiscal rule.
QUESTION from Kommersant:
How serious can potentially be a temporary surge of unemployment in the second quarter? What can limit it?
ELVIRA NABIULLINA:
The negative impact of the coronavirus and the closing of a range of enterprises and businesses may certainly lead to an increase in unemployment. At the beginning of the year, our unemployment rate was really low, at the historically low level. A certain growth is possible, but it will depend on the implemented restrictive measures. We know that these restrictive measures will be set to a great extent by the constituent entities of the Russian Federation; therefore, it is hard to make any assessments at the moment. We will assess the situation depending on the measures taken.
QUESTION from Interfax:
When will inflation exceed the target in 2020, according to the Bank of Russia’s estimate? Which level of inflation does the regulator forecast by the end of 2020? Is the weakening of the ruble already influencing inflation movements? How strong is this effect and when specifically will it have the maximum impact on inflation? How serious is the opposite effect of weak demand on prices?
ELVIRA NABIULLINA:
This is true — inflation movements are currently being influenced by a whole range of different factors having diverse effects. First, this is the weakening of the ruble, which has a pro-inflationary effect. Second, this is increased demand for food and basic goods people were purchasing in advance, expecting self-isolation, which is also a pro-inflationary factor. Therefore, we are currently observing a short-term rise in inflation. This trend is intensified by weak demand factors.
By the way, external demand has been declining for a long time by now and it is sluggish. Today, we do not see that this situation will be changing in a favourable way. On the contrary, it is widely predicted that economic growth worldwide, the economy, and external demand will slow down. Domestic demand will also be declining. Therefore, we can certainly see that disinflationary factors will prevail in the mid run. We believe that in 2020 inflation will return to target — currently it is below this level. However, we are going to review this estimate when preparing a new baseline forecast at the end of April 2020.
QUESTION from Bloomberg:
How large is the potential for a key rate cut in 2020? Is this 50 bp or 100 bp?
ELVIRA NABIULLINA:
I would like to repeat once again that we do see room for decreasing the key rate, but the exact time and the extent of this reduction will be considered at the Board of Directors’ meetings after analysing all factors and the balance of risks for inflation and for the economy in general.
QUESTION from Vedomosti:
Sberbank has announced that it has joined the Faster Payments System. What is the amount of fines paid by Sberbank for the delayed connection to the system?
ELVIRA NABIULLINA:
By the moment, Sberbank has already completed the testing and started the stage when a number of its clients have connected to the Faster Payments System. Currently, the work is being performed according to the schedule that was additionally agreed upon with Sberbank during the process of its connection to the FPS. Again, this work is being carried out according to the schedule, and we expect that the full-fledged connection will be completed in June. We have charged several fines, but right now I cannot remember the exact amount.
QUESTION from Pravda Severa, Arkhangelsk:
In these conditions of uncertainty in financial markets and a potential acceleration of inflation, how can people protect their savings partially accumulated to purchase housing, for instance? Should they buy securities that are falling in price or foreign currency, or should they take out mortgage loans as soon as possible?
ELVIRA NABIULLINA:
Today, interest rates in the banking system remain attractive, and I would like to say that the Bank of Russia will do everything possible to prevent the depreciation of savings. First and foremost, we are controlling inflation. Savings depreciate when inflation is high. We are doing our best to prevent a rise in inflation and to keep it in line with out target. People should decide themselves where to invest their funds. But I would stress once again that we do see that bank deposits still remain quite attractive for saving.
QUESTION from Reuters:
Has a key rate increase become less likely? You have said that you will choose the right moment to reduce the key rate. Does this imply that the easing of monetary policy will continue only after markets become less volatile?
ELVIRA NABIULLINA:
Of course, making a key rate decision, we take into consideration not only inflation-related issues and the situation in the economy, but also the issues of ensuring financial stability, making a comprehensive analysis of all factors. And the most important thing I would like to stress is that we will scrutinise all factors by the moment of our decision and make it with account of the situation. However, we do see a potential for cutting the key rate in the mid run specifically.
QUESTION from RBC:
Is the Bank of Russia planning to postpone effective dates of new regulatory measures, e.g., the debt burden ratio for mortgage loans, as well as the systemic importance buffer for the largest banks and the direct limitations on granting certain types of loans?
ELVIRA NABIULLINA:
That’s true — we have made the decision to postpone a range of regulatory measures. For instance, we have been discussing the issue of introducing differentiated systemic importance buffers with market participants for a long time. We have decided to postpone the differentiation until 2021. We have also postponed until 2022 the effective date of the concentration ratio that potentially may limit the disbursement of loans to major companies. We have also postponed, and will probably postpone it until 2021, the regulation related to mergers and acquisitions.
As to the debt burden ratio, today we have made the decision on buffers, but in relation to the earlier extended loans. However, we believe that it is essential to maintain control over the debt burden level. And as we develop and support lending, we should not increase lending volumes by artificially supporting lending to people that already have high debt burden. Therefore, we consider that the debt burden ratio as an instrument shall remain in force. Of course, we will monitor the situation, and there can be various aspects, but we are currently pursuing this approach.
I would also like to emphasise that, as regards the debt burden ratio for mortgage loans, we already made the decision a couple of weeks ago to reduce buffers and to ease some requirements for loans with a low DBR and a small down payment. We also introduced the differentiation for the loan to collateral ratios from 80% to 85% and from 85% to 90%. This is also a kind of easing, but it will not cause accumulation of risks in the future.
QUESTION from Komsomolskaya Pravda:
Is it possible to oblige banks to grant loan repayment holidays to all Russian citizens, e.g., for two months, with the Central Bank providing short-term liquidity to this end? I am asking this because it is currently quite complicated to assess whether a particular person is actually facing hardships or not. The US authorities have already promised to provide money to everyone, and we, as always, have first to collect a heap of certificates, which is very difficult in today’s situation because companies’ HR divisions are also not working.
ELVIRA NABIULLINA:
We still consider it feasible to provide targeted support in these conditions and, first and foremost, to concentrate the aid and financial resources on those who have actually been affected: people and businesses experiencing hardships. And as I have already said, as the situation unfolds, we might expand the list of the most affected industries, if needed.
Of course, there are administrational issues. Generally, our administering is not always simple, but as to these programmes, we would like to make the mechanisms, including for loan restructuring, absolutely transparent and easy-to-understand. We expect that the Government will soon issue rules for calculating monthly income for the last year—the average weighted income—to make it all clear and simplify the calculation for individuals.
In addition, we are making everything possible for financial institutions to use primarily remote channels, and we are urging them to do so, especially in the current conditions, so as to avoid people’s visits to offices. Thus, banks could accept loan restructuring applications from individuals by telephone, provided they have capabilities to identify borrowers. But such remote tools shall be transparent and improve remote administering.
It should be emphasised that, although not the entire financial system, but a considerable part of it is ready for this. It has been switching to digital technologies and remote services for quite a long period of time by now. This is why we should harness these opportunities. And by the way, we have already been creating before the infrastructure for developing this very type of services that is currently the most demanded one.
Once again, I believe that targeted aid, transparency, clarity and remote channels will help reduce the burden for the people. But still, the aid shall be targeted and provided directly to those who actually need it. Thank you.