Page 112 - RusRPTJul23

reaching 162bn rubles in May, down from 221bn rubles in April) due to seasonal factors affecting the completion of construction projects.
8.1.4 NPLs
Data on the share of problem loans for May will be available after the release of this article, but the CBR does not anticipate a significant deterioration as the balance sheet shows only a slight increase in overdue debt for corporate and retail lending in May (+0.1% or +4 billion rubles, and +1.4% or +17 billion rubles, respectively).
In April, the proportion of problem loans remained unchanged, standing at 6.3% in the corporate portfolio, 8.7% in unsecured consumer loans, and 0.6% in mortgage loans 9.
The volume of loan restructuring in April decreased by approximately 40% compared to March, amounting to 410 billion rubles (<1% of the loan portfolio), compared to 700 billion rubles. This is generally consistent with the monthly average level of 2021 (320 billion rubles). In the medium-term perspective, the risks associated with such loans are moderate. The majority of restructuring activities were carried out by large industrial and financial companies, as well as companies operating in the real estate sector. Up to one-third of the restructuring involved extensions related to the peculiarities of the budget process for financing government contracts and difficulties with international settlements, indicating that borrowers' positions did not worsen.
112 RUSSIA Country Report July 2023 www.intellinews.com