Russian banks rarely lending in yuan due to bad experience with yuan liquidity, weak demand - Sberbank

MOSCOW. Feb 4 (Interfax) - Russian banks are issuing loans in yuan selectively in light of past problems with liquidity in the Chinese currency, as well as a lack of demand for such instruments from companies, Sberbank deputy CEO and CFO Taras Skvortsov said in an interview with Interfax.

"There's no demand [for yuan loans]. There never has been in rupees," Skvortsov said when asked if companies are interested in loans in yuan and rupees.

Despite an improvement in the situation with yuan liquidity, banks' "memory has not yet been erased," and they are still wary of lending in this currency, he said.

"There are some deals, but they're very spotty. The bank must be completely sure it has enough funding for this transaction and it won't have to go to the market for it, because even small amounts can bring about a strong imbalance on the market. This applies to the forex market in general. The exchange rate of the ruble against the dollar or ruble against the yuan reacts sharply to small purchases/sales of forex by companies, the regulator. The approach here is very careful. We see only selective deals on the market and we do the same," Skvortsov said.