US EditionRussia’s Largest Banks Exploring Bailouts as Bad Loans Grow – Bloomberg
RUSSIA, JUL 17 – At least three major Russian banks plan to request bailouts as bad loans rise to 10.5% for households and 4% for businesses, risking hidden financial weaknesses.
- At least three of Russia’s largest banks are quietly making plans to seek financial assistance from the Central Bank if the situation with loan defaults deteriorates over the coming year.
- This bailout consideration follows rising bad loans amid Russia’s economy struggling in its third year of the Ukraine war and escalating borrowing costs.
- Data indicates that problem loans among corporate borrowers were approximately 4% in October 2024, while the proportion of unsecured consumer loans overdue by more than 90 days rose sharply to 10.5% by the end of the first quarter.
- In June, Sberbank CEO Herman Gref said the bank’s path forward would “not be easy” due to declining loan quality and more debt restructurings by companies.
- The bailout talks and rising bad loans suggest increased stress in Russia’s banking sector, despite the Central Bank claiming overall system stability and encouraging loan restructuring.
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War-weary Russian banks are reportedly eyeing state bailouts as bad loans pile up
The Kremlin in Moscow.Westend61/ Getty ImagesSome banks in Russia are reportedly considering asking the central bank for help.At least three lenders have discussed approaching the Bank of Russia for a bailout, Bloomberg reported.Russia's economy is showing signs of struggling in the third year of war in Ukraine. Some big banks in Russia are reportedly getting ready to ask for an emergency bailout if their finances don't improve over the next yea…
Russia's banks seem to be worried about lazy loans, and the Kremlin could launch a bailout, and the Central Bank's appeasement.
Russia’s Largest Banks Exploring Bailouts as Bad Loans Grow – Bloomberg
At least three of Russia’s largest banks are quietly preparing to ask the Central Bank for a bailout if more borrowers are unable to repay their loans over the next year, Bloomberg reported Thursday, citing unnamed former officials and internal bank documents.
Read all the latest developments and news about the Russian war of aggression on Ukraine in the live ticker on ntv.de.
Managers of financial institutions in the country are not only worried about the increasing volume of bad loans
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