The Central Bank recorded a deterioration in the quality of loans restructured since March 2022 to companies
The Bank of Russia noticed a deterioration in the quality of loans restructured since March 2022 to companies (a quarter of the portfolio was restructured), follows from review financial stability. Thus, some of the restructured loans have repeated restructurings and the duration of the delay is growing. For example, about 2% of corporate loans have been restructured five or more times. At the same time, every fifth loan restructured since March 2022 was re-restructured.
According to the Central Bank at the beginning of April 2023, the total volume of the corporate loan portfolio to non-financial companies amounted to 52.9 trillion rubles.
In the first quarter of this year, arrears on loans to commodity and construction companies began to grow, the review says. At the same time, a number of exporters, mainly the oil and gas sector, are facing a decline in revenue. This is happening “against the backdrop of the entry into force of the EU oil embargo, as well as ongoing sanctions pressure, expressed in financial, settlement and logistical restrictions,” the review says.
Despite this, the share of “bad” loans itself was decreasing, but this was due to the growth of new loans (at the beginning of April, the growth in ruble lending in annual terms exceeded 28%), according to the Central Bank review. In particular, for large companies the share of bad loans is 4.7%, for loans to small and medium-sized businesses - 7.3%. In total, the share of restructured loans is about 25%. Among such loans, in general, 1.3% is overdue by more than 90 days. Most increased it after the previous restructuring.
At the same time, the corporate lending segment itself underwent a transformation, the review draws attention: “Foreign banks withdrew from syndicated loans, financing was attracted to buy a share of foreign companies in Russian business, borrowers restructured loans previously provided in an “unfriendly” foreign currency.”