Page 155 - RusRPTAug24

April. However, excluding the repayment of a large bridge loan issued in May, the lending growth actually accelerated slightly, reaching 1.5% compared to 1.4% in May, according to recent data.
Rouble-denominated loans increased by 1.5 trillion roubles, a growth of 2.3%, with companies from various industries borrowing to replenish working capital and finance long-term projects initiated earlier. Preliminary data also indicated that approximately 0.3 trillion roubles of this increase was attributed to developers under project financing for housing construction.
The demand for rouble loans is supported by strong financial results from companies and possibly by borrowers' expectations of further interest rate hikes.
Conversely, foreign currency loans saw a moderate decline, decreasing by 0.3 trillion roubles in rouble equivalent, or 2.7%, following a 1.4% increase in April.
In the first half of 2024, corporate loans grew by 5.6 trillion roubles, or 7.5%, compared to 4 trillion roubles and a 6.7% increase in the first half of 2023. Including bonds, the total volume of credit claims on the corporate sector rose by 5.8 trillion roubles, or 7.4%, compared to 3.7 trillion roubles and a 5.8% increase in the first half of 2023.
Mortgage Growth Accelerates in June, Driven by State Support Programs. Preliminary data indicates a significant acceleration in mortgage growth in Russia, increasing to 3.1% from 1.7% in May. Mortgage issuances rose by 44% to 788 billion roubles, aligning with the average monthly volumes of the record-setting second half of 2023, which was around 780 billion roubles.
The surge in growth was primarily driven by state support programs. The "Family Mortgage" program saw the most significant increase in demand, with issuances rising by 81% to 383 billion roubles from 212 billion roubles in May. This represents the highest volume since the program's inception, likely due to borrowers' concerns about potential tightening of its conditions.
Additionally, the "Preferential Mortgage" program experienced a 59% increase in issuances, reaching 210 billion roubles from 132 billion roubles in May, just before the program's expected conclusion on July 1, 2024. Overall, mortgages issued under state support programs grew by 49%, totaling 629 billion roubles, with their share accounting for approximately 80% of all mortgage issuances.
Market-based mortgage issuances also showed positive dynamics, increasing by 28% to 158 billion roubles from 124 billion roubles in May. This is a notable rise considering the high market interest rates currently in place.
Consumer Loan Portfolio Growth Remains Steady in June Amid Strong Demand. Preliminary data shows that the growth rate of consumer loans in Russia maintained a high level of approximately 2% in June, consistent with May's figures. For the first half of 2024, the consumer loan portfolio expanded
155 RUSSIA Country Report August 2024 www.intellinews.com