Small business fell out of love with foreign currency loans – Newspaper Kommersant No. 236 (7437) of 12/20/2022

The Bank of Russia data released yesterday indicates a slowdown in lending to small and medium-sized businesses (SMEs) in October. The total volume of loans for the month reached 1.1 trillion rubles, having increased by 13 billion rubles or 1.2% compared to September. In annual terms, the growth was 13.3%. The number of loans issued in comparison with September decreased by 2.4%, compared to last year – increased by 1.7%.

Almost the entire SME loan portfolio consists of ruble loans. The volume of foreign currency lending in October collapsed 145 times (from 57.9 billion to 400 million rubles). In July-August, analysts recorded a surge in foreign currency loans to SMEs – then the dynamics was explained by the stimulation of small businesses to import substitution. During the summer, equipment purchases under the parallel import regime were supported by a favorable exchange rate, but by September the trend reversed. The investment activity of SMEs was also affected by partial mobilization – business surveys indicated an increase in uncertainty among entrepreneurs, fears about the depreciation of the ruble and possible problems with import supplies in the event of tougher sanctions.

According to the Central Bank, in October the priorities of SMEs continued to shift in favor of long-term loans: if in the summer business increased its portfolio of short-term loans (62% of the portfolio in July-August), then in October their share fell to 45%. The average loan size at the same time increased – from 5.2 million rubles. up to 5.9 million rubles In the sectoral context, the largest share of loans traditionally falls on trade, growth was noted in scientific and technical activities, and the decline in agriculture continues.

The volume of lending to SMEs is largely supported by preferential programs of the government (the volume of loans with state guarantees has doubled this year). The Central Bank is ready to increase the availability of credit resources for SMEs, reducing the costs of banks when working with them. However, the regulator acknowledges that uncertainty remains the main barrier to business development. In December, Mikhail Mamuta, a member of the Board of Directors of the Central Bank, noted a paradox: when banks are ready to lend to small businesses, they themselves refuse previously approved loans. “This is due to insufficient certainty and an inaccurate understanding of their prospects,” explained the representative of the Central Bank.

Diana Galieva