{"id":16854,"date":"2025-08-22T20:14:14","date_gmt":"2025-08-22T20:14:14","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/16854\/"},"modified":"2025-08-22T20:14:14","modified_gmt":"2025-08-22T20:14:14","slug":"russias-credit-growth-slows-as-households-cut-borrowing","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/16854\/","title":{"rendered":"Russia\u2019s Credit Growth Slows as Households Cut Borrowing"},"content":{"rendered":"

Russia\u2019s credit market expanded by 1.7 trillion rubles ($21.2 billion) in July, reaching nearly 150 trillion rubles in total outstanding debt, the Central Bank has\u00a0reported<\/a>.<\/p>\n

But the annual growth rate slowed to 10.1% from 10.7% in June \u2014 its weakest pace since early 2021.<\/p>\n

The regulator described retail lending as \u201cweak\u201d and corporate lending as \u201cmoderate,\u201d attributing the slowdown to its tight monetary policy.<\/p>\n

While credit is still up 10% from a year ago, much of that growth reflects last year\u2019s lending boom. So far in 2025, lending has increased by only 4.1%.<\/p>\n

The Central Bank\u2019s figures cover all bank claims on companies and households \u2014 including loans, bonds and promissory notes \u2014 and are adjusted to exclude distortions from securitization.<\/p>\n

In July, banks packaged portions of their mortgage portfolios into bond obligations, which reduced the share of household lending in money supply growth.<\/p>\n

Household credit made a negative contribution to the annual expansion of money supply for the first time since late 2016.<\/p>\n

Overall retail lending contracted slightly, falling by 100 billion rubles to 38.8 trillion rubles by Aug. 1, down 0.9% year on year.<\/p>\n

\u201cHouseholds in July primarily repaid earlier obligations and showed little appetite for new borrowing,\u201d the Central Bank said.<\/p>\n

By contrast, corporate lending grew by 1.6% in July, helping to drive a 1.1% rise in total credit.<\/p>\n

Corporate borrowing picked up in response to an easing in monetary conditions,\u00a0said<\/a> economist Yegor Susin, who noted that this revival contributed to faster money supply growth.<\/p>\n

Budget spending, however, has not yet played a significant role, analysts at Tverdye Tsifry (Hard Numbers) wrote<\/a>.<\/p>\n

The Central Bank\u2019s survey<\/a> of more than 10,000 companies showed that while credit conditions remain tight, signs of improvement have appeared.<\/p>\n

A growing share of businesses reported some easing in access to credit.<\/p>\n

Still, many firms continue to cite<\/a> a lack of working capital as a constraint, and high interest rates are keeping demand for loans from small and medium-sized businesses at extremely low levels.<\/p>\n

The regulator expects<\/a> lending to slow further over the remainder of the year, projecting overall credit growth of 7 to 10% in 2025.<\/p>\n

Corporate portfolios are expected to expand by 9 to 12%, while retail lending is forecast to grow by only 1 to 4%, including a 3 to 6% increase in mortgages.<\/p>\n","protected":false},"excerpt":{"rendered":"Russia\u2019s credit market expanded by 1.7 trillion rubles ($21.2 billion) in July, reaching nearly 150 trillion rubles in…\n","protected":false},"author":2,"featured_media":16855,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[79,632,179,18,1729,19,17],"class_list":{"0":"post-16854","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-central-bank","10":"tag-economy","11":"tag-eire","12":"tag-finance","13":"tag-ie","14":"tag-ireland"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/16854","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=16854"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/16854\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/16855"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=16854"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=16854"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=16854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}