Bank of Russia Claims on Credit Institutions via FX Repo

* Amount of funds to be repaid by credit institutions under second repo leg may be decreased by the sum of margin and coupons on securities. In case the value of securities decreases below the permissible level established by the Bank of Russia, credit institutions will make cash margin payments which reduce their obligations to the Bank of Russia under second repo leg. Upon the receipt by the Bank of Russia of payments (coupon income, partial repayment of the nominal value) on the securities transmitted by credit institutions under first repo leg, the credit institutions’ obligations to the Bank of Russia under second repo leg are adjusted for the similar amount, i.e., the said payments are accounted for repayment of credit institutions’ debts. In view of the above factors, the amount under first repo leg may exceed the total amount of second repo leg.