Page 88 - RusRPTJun21

8.1.2 Loans
In April, there was a sharp surge in corporate lending which was up by 2.5% or by RUB1150bn -- more than for the entire first quarter of 2021. The increase in the portfolio in April was largely attributable to lending to a number of large transactions of mining companies and oil and gas industries, as well as loans to subsidiaries of systemically important credit institutions. Housing developers accounted for an extra RUB120bn in April as developer raise funds to complete developments, which compares to an increase of RUB100bn in March.
Mortgage lending again reached another peak growth rate (about 2.8%, according to preliminary data), typical for September-December.
The volume of loans issued under a preferential mortgage at 6.5% under the government sponsored programme remained practically unchanged compared to March of RUB132bn versus 135bn respectively. However, in the context of a slight increase in the issuance of "market" mortgage, according to preliminary data, the share of preferential mortgages in issuances in April fell to 25% from 27% in March. In total, as of May 1, within the framework of the 6.5 Program, loans were issued in the amount of over RUB1.4 trillion.
Growth in unsecured consumer lending in April (1.6%, according to preliminary data) slowed slightly compared to March (1.9%), but still remains high.
This dynamics is probably due to the growth of banks' risk appetite against the background of the improving economic situation. To limit the risks associated with the accelerated growth of unsecured consumer lending, the Bank of
88 RUSSIA Country Report June 2021 www.intellinews.com