On 30 December 2009 the Government approved the Main Directions of the Government Anti-Crisis Actions for 2010. The document is available on the Government's website.

In 2010 the Government plans to shift the emphasis from anti-crisis measures to measures aimed at increasing of industrial capacity, modernisation of the Russian economy and development of innovative technologies.

In particular, it provides for the following measures:

On 27 December 2009 the President signed Federal Law No. 361-FZ amending the Law on Additional Measures for Support of the Financial System.

The amendments allow extensions for loans granted by VEB to companies for the repayment of their external debt, and provide for changes in the interest rates according to LIBOR rates at the time of extension.

The Law entered into force on 29 December 2009.

On 11 November 2009 the Central Bank issued Directive No. 2329-U amending Central Bank Regulation No. 215-P "On the Method of Calculation of the Net Worth (Capital) of Credit Organisations," dated 10 February 2003. The Directive entered into force on 16 December 2009.

Under Regulation No. 215-P, a credit organisation's net worth (capital) consists of the core capital and additional capital (Tier 1 and Tier 2 capital, respectively).

The Directive follows Federal Law No. 181-FZ, dated 18 July 2009, which provides for the possibility of increasing banks' capitalisation by way of exchange of banks' preferred shares for federal loan bonds. The Directive provides that preferred shares issued under this Law make up part of the bank's core capital.

On 11 December 2009 the Central Bank issued Directive 2359-U regarding the provisions for potential losses in loans.

The Directive extends the term of softened rules on provisions for potential losses in loans from 31 December 2009 to 30 June 2010 (the rules were introduced by Central Bank Directive No. 2156-U, dated 23 December 2008).

The Directive entered into force on 28 December 2009.

On 25 December 2009 the Central Bank issued Directive No. 2369-U, decreasing the refinancing rate from 9% (which was effective as of 25 November 2009) to 8.75% per annum.

The Central Bank sets the refinancing rate for its financing of commercial banks. The rate is also used for calculating interest on commercial loans (if the rate is not specified in an agreement), tax payments and in other cases provided by law.

The Directive entered into force on 25 December 2009 and the new rate applies as of 28 December 2009.

On 27 October 2009 the Central Bank issued Directive No. 2312-U (amending Directive No. 1379-U, dated 16 January 2004) and Regulation No. 345-P.

The Directive and the Regulation entered into force on 27 December 2009.

The Directive and the Regulation follow amendments to the Law on Insurance of Individual Bank Deposits, which entered into force on 27 December 2009 (Federal Law No. 270-FZ, dated 22 December 2008). The amendments introduce an additional requirement for banks to participate in the system of mandatory insurance of individual bank deposits – namely, the disclosure of information on persons that significantly impact (directly or indirectly) the decisions of the bank's management bodies.

According to the Directive, a bank must disclose the above information by publishing it either on the Central Bank's website or on the bank's website. The scope of information to be published includes the name, place of residence and some other data identifying persons that significantly impact the bank's management decisions.

If a bank chooses to disclose the information on the Central Bank's website, it must follow the procedures set out in the Regulation. Namely, the bank must submit to the Central Bank not only the list of persons that significantly impact the bank's management decisions, but also a flowchart showing the bank's ownership structure, including its ultimate owners. The Regulation contains examples of how to complete the list and flowchart.

On 9 December 2009 the State Duma adopted in the first reading Draft Law No. 257299-5 amending the Law on Banks and Banking Activity.

The amendments seek to ban banks from unilaterally increasing interest rates, commission fees and decreasing the term of credit agreements if they are concluded with individual borrowers (currently, banks do this if such opportunity is provided for in a credit agreement).

The provisions of the Draft Law will apply if adopted by the State Duma in three readings, approved by the Federation Council, signed by the President, and officially published.

On 27 December 2009 the President signed Federal Law No. 352-FZ on debt to equity conversions. The Law entered into force on 31 December 2009.

The Law amends:

In particular, it introduces the possibility of converting debt into equity for Russian companies (that is, a company will be able to discharge its debt by increasing its charter capital). This option is not available for credit organisations.

A Special Update will be published soon discussing these amendments in more detail.