Russian Central Bank. Photo: TASS
Sberbank, Russia’s largest lender, has warned that prolonged high interest rates could push many Russian companies into a “severe crisis” if tight monetary policy continues for another year.
Source: The Moscow Times
Details: Anatoliy Popov, Deputy Chairman of Sberbank’s board, cautioned that as long as businesses have to manage high borrowing interest rates, their resilience may falter under sustained pressure from the Central Bank of Russia’s policy.
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Quote: “In the context of high interest rates, the number of companies facing difficulties with debt servicing is growing,” Popov said. “But there are no companies in a ‘severe crisis’ yet. For now, companies are holding on. If this policy persists for another year, the situation could deteriorate significantly.”
More details: The Central Bank of Russia reported problem loans totalling 3.2 trillion roubles (approx. US$40,7 billion), or 4% of the corporate portfolio as of 1 May 2025. The ACRA rating agency estimated that 3.7 trillion roubles (US$47,1 billion) in debt is owed by borrowers whose creditworthiness could decline sharply due to rising interest rates.
A May 2025 survey by the Central Bank found that 17% of the 12,000 companies surveyed cited a lack of working capital as a key issue limiting operations.
Background: On 6 June 2025, the Central Bank of Russia lowered its key rate from 21% to 20% per annum, though it remains high.
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