Page 63 - RusRPTSept20

year, when companies prepared for possible restrictive measures, e.g. by activating their credit limits.
In the second quarter of the year, the growth of the stock slowed down, but in July the corporate loan stock grew again by 1.6% compared to the previous month. The growth was driven by loans to a few large companies and funds channelled through various government support programs.
At the end of July, the stock of corporate loans granted by credit institutions was RUB42,900bn, and the annual growth of the loan stock accelerated to 9% in July.
The loan portfolio of the SME sector, supported by many support measures, has grown slightly faster, but loans to SMEs still account for only about 12% of the corporate loan portfolio. The interest rate on ruble loans has fallen significantly during the year.
At the end of July, the stock of household loans was RUB18,700bn, or 13% higher than a year earlier. The growth of the loan portfolio has slowed down from last year and the growth relies more strongly on the growth of mortgage loans. At the end of June, mortgages accounted for about 45% of household loans, or RUB8,200bn.
8.1.3 Deposits
The decline in interest rates has been reflected in deposit rates. In June, the interest rate on household deposits with an agreed maturity of less than one year fell below 4%, below the central bank's key interest rate.
The decline in interest rates has contributed to increased interest in other investment opportunities. In April-June, almost one million new small investors entered the securities market. Funds in retail investment accounts grew by 14%, clearly faster than bank deposits.
63 RUSSIA Country Report September 2020 www.intellinews.com