Rus­sian banks ease loan terms as cri­sis fades

The Pak Banker - - Company& -

MOSCOW: Rus­sian banks eased con­di­tions for both pri­vate and cor­po­rate bor­row­ers in the third quar­ter due to greater com­pe­ti­tion, eas­ier ac­cess to funds and an up­turn in the gen­eral econ­omy, the cen­tral bank said on Thurs­day.

Banks across Rus­sia low­ered in­ter­est rates and fees af­ter Rus­sia's bench­mark re­fi­nanc­ing in­ter­est rate fell to a record low of 7.75 per­cent in June, ac­cord­ing to a quar­terly Cen­tral Bank sur­vey of lend­ing con­di­tions at 49 large Rus­sia banks.

"Credit avail­abil­ity for all cat­e­gories of bor­row­ers con­tin­ued to rise, and the con­di­tions of bank lend­ing for dif­fer­ent cat­e­gories of bor­row­ers soft­ened com­pa­ra­bly," the cen­tral bank said in a state­ment.

Con­di­tions for all bor­row­ers im­proved for the sec­ond quar­ter in a row as the govern­ment pre­dicted the econ­omy would grow around 4 per­cent this year af­ter con­tract­ing 7.9 per­cent in 2009, its worst per­for­mance for 15 years.

The av­er­age rate Rus­sian banks charged busi­nesses for rou­ble credit fell to 8.9 per­cent in Oc­to­ber, its low­est level since mon­i­tor­ing be­gan in 1998, ac­cord­ing to cen­tral bank fig­ures.

Pri­vate bor­row­ers en­joyed a more sig­nif­i­cant eas­ing in con­di­tions than cor­po­rates in the third quar­ter and were al­lowed to bor­row larger sums than be­fore, the sur­vey said.

Bet­ter loan con­di­tions for in­di­vid­u­als were seen in 75 per­cent of banks, with im­prove­ments rel­a­tively con­sis­tent across Rus­sia's re­gions.

Cor­po­rate bor­row­ers were al­lowed to take loans for longer pe­ri­ods than be­fore and the re­quire­ments re­gard­ing their fi­nan­cial health were soft­ened. Less than twothirds of banks eased con­di­tions for cor­po­rates, the sur­vey said. - PB News

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