Loans to Russian corporates are falling
Figures released on November 7 show that lending to Russian corporates is down. This is surprising in view of the Central Bank reducing the interest rate on four occasions since June 2019. In June 2019 it was 7.75%. In October 2019 it was lowered to 6.5%The loan portfolio of the country is 3.5% of GDP. Private sector borrowing in October 2019 is 8.6% y-o-y. Corporate lending is low. This is causing the Russian Ministry of Economic Development much anxiety. Growth forecasts are modest and if lending remains at this level growth will fall close to nil.