Page 86 - RusRPTOct23

8.1.2 Loans
The growth of corporate lending slowed down in September, the Russian Central Bank’s Governor Elvira Nabiullina told a forum on September 28, adding that the regulator also sees cash returning to banks at more attractive interest. According to data provided by the Bank of Russia, corporate loans in rubles increased by 2.2% in August. Meanwhile, the regulator said that considering rising rates the growth of lending was expected to be more limited in the remaining months of the year. The Central Bank upgraded its outlook on growth of corporate lending for 2023 to 14-18% and downgraded the outlook on growth rates of persons and legal entities for 2024 to 7-12%.
In August, Russian companies continued to exhibit an increased demand for credit, marking a rise of 1.7% or 1.1 trillion rubles. This growth comes on the heels of a 2.1% increase in July, suggesting a sustained appetite for credit among businesses. Several factors may contribute to this upswing.
One possible explanation is that companies are seeking loans before interest rates potentially rise, reflecting a proactive approach to secure favorable lending terms. Additionally, seasonal factors could be at play, with companies seeking credit in preparation for government contract payments closer to year-end.
Notably, a significant portion of this credit demand, approximately one-fifth, can be attributed to project financing for housing construction. This aligns with trends observed in recent months, indicating a continued focus on housing development projects.
86 RUSSIA Country Report October 2023 www.intellinews.com