Page 86 - bneIntelliNews monthly country report Russia May 2024

Consumer Lending Accelerates in Russia Amidst Robust Consumer Activity
Preliminary data indicates a notable acceleration in consumer lending, surging to approximately 2.0% from 0.9% in February. The sustained high level of consumer activity suggests confidence in future income, taking into account the market labor situation.
Preliminary data reveals a notable surge in mortgage growth, reaching 1.2% following February's 0.8% mark. Mortgage issuances soared by 34% to 447 billion rubles from 333 billion rubles in February, primarily propelled by state-supported mortgages, which saw a 50% increase. Market mortgages, however, experienced only a modest 5% growth, capturing approximately 30% of all issuances since the beginning of the year.
Despite the tightening conditions implemented at the end of 2023, the "Family Mortgage" program remains the most popular, with a 50% increase in issuances in March, reaching 169 billion rubles from 113 billion rubles previously. The "Preferred Mortgage" also saw a significant uptick of 37%, almost reaching the monthly average of 103 billion rubles.
Additionally, the "IT Mortgage" program experienced active disbursements, reaching 46 billion rubles compared to 24 billion rubles in February. Borrowers seemingly rushed to secure loans before the program's limit was reached. As of April 13, 2024, the government increased the program's limit by 200 billion rubles to a total of 700 billion rubles.
86 RUSSIA Country Report May 2024 www.intellinews.com