Page 77 - RusRPTOct21

8.1.4 NPLs
NPLs: In August, corporate overdue debt increased slightly (RUB28bn, or 1%), mainly for individual borrowers, which is not a concern, since the data loans were reserved in advance.
In the retail portfolio, overdue debt also grew moderately (RUB10bn, or 1%), mainly in the consumer segment lending amid its rapid growth.
Creditworthiness is aig issue in the face of rising key rates. The number of creditanks think they may go unpaid has risen 9% since the beginning of the year to reach 418illion rubles ($5.73illion). That figure is derived from the gapetweenanks' reserves for potential losses and the amount of those reserves marked for credits that are already 90+ days delinquent. Moreroadly, reserves for these instances have grown 5% for Jan.-July 2021,but the net lending portfolio has grown 13.8%.
The CBR’s obviously worried even if it thinks things are pretty well in hand but there is a gap between privateorrowing and corporateorrowing, setting aside SMEs. Larger firms are all in panic mode about supply chains and thinking about capital expenditures where they think it's possible.
For instance, the same inflation from higher commodity prices hurting consumers right now is inspiring Rostsel'mash to increase its investment program from RUB19.9bn to RUB28.5bn in hopes of meeting high demand for agricultural machinery. Last year, the company made 14,800 units – that was a 36.8% increase over 2019 levels. That's room for growth.
77 RUSSIA Country Report October 2021 www.intellinews.com