Page 94 - RusRPTSept23

8.1.2 Loans
Corporate lending experienced a notable growth of 2.1% in the first half of the year, equivalent to 1.4 trillion rubles. This increase, which outpaced both the average monthly rate of 1.1% in 2023 and the 2021 rate of 0.9%, indicates a robust trend. It's important to note that only loans in rubles expanded, accounting for 1.438 trillion rubles, an uptick of 2.6%.
The primary recipients of these loans were companies within the mining and metallurgical, transportation, chemical, oil and gas, agricultural, and financial sectors. Additionally, businesses engaged in commercial real estate and housing construction experienced a boost, including a significant rise in project financing for housing construction, amounting to around 190bn rubles.
The substantial surge in ruble-denominated lending could stem from companies' urgency to secure loans within previously approved credit limits while factoring in rising interest rates. The necessity for borrowed funds to support ongoing operations may also be driving this trend.
Although there was a slight decline in foreign currency loans (-70bn rubles in ruble equivalent, -0.8bn $, -0.6%), loans denominated in yuan continue to gain attractiveness. An estimated 4.5bn $worth of loans in unfriendly currencies were converted into yuan during July. Consequently, the proportion of yuan-denominated loans within foreign currency loans increased from 17% to 20%.
The indicators of the credit quality of corporate loans remain at a high level.
RUSSIA Country Report September 2023 www.intellinews.com