Russia’s central bank on Thursday said it planned to set a surcharge for banks when issuing new loans to large firms with a high debt burden, as the regulator looks to limit credit risks for Russian companies contending with interest rates at 21%.
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Russian Railways, a key cog in Russia’s industrial machine, is one of several firms planning to reduce investments next year. The state-owned monopoly expects its interest payment costs to hit $7 billion next year, suggesting a rise of around $4 billion, a company document seen by Reuters showed last week.
The central bank said the measures would apply to companies with debt over 100 billion roubles ($987 million), an interest coverage ratio of less than 3% and whose consolidated debt exceeds 2% of the Russian banking sector’s capital.
It did not specify how much the surcharge would be.
[At the time of the publication of this article on 21 November, $1 stood at 101.2955 roubles.]
In related news, Ukrainian and independent (exiled) Russian media report that Russian consumer loans are hitting 44%.
As of the beginning of November, consumer loan rates in Russian banks ranged from 25% to 38% per annum, but by 19 November, the maximum rate had risen to 44%.
It is noted that almost half of borrowers have problems with loan repayment: 35% have minor difficulties, 12% have serious ones, and 1% admit that they can no longer pay at all.