Households’ Overdue Debt to Banks Has Amounted to Rb 700bn

In October, households' ruble debt to banks increased by 0.8%, too, having amounted to Rb 11,866 trillion. It is to be noted that for the first time in the long period the outstanding debt on loans in foreign currency stopped decreasing. The US dollar equivalent of the volume of such loans remained at the level of $6.3bn, while growth rates turned out to be a little higher than those of the ruble debt, that is, 0.9%.

The most obvious factor behind that dynamics was growth in the overdue debt due to devaluation of the ruble and higher cost of servicing of loans in foreign currency. So, the total volume of the overdue debt on loans to households increased within a month by 3.0% or Rb 20bn (without adjustment to revaluation of the overdue debt on loans in foreign currency). As a result, the share of the overdue debt in the total volume of the debt rose from 5.8% to 5.9%, having amounted to Rb 700bn. The overdue debt on loans in foreign currency rose by 6.4% in the US dollar equivalent or $60m. The total volume of the debt on loans in foreign currency increased by the same value, too. The share of the overdue debt on foreign currency loans increased within a month from 16.2% to 17.1%.

The value of provisions for possible bad loans to individuals increased within a month by 1.8% (Rb 19bn), while its ratio to the total volume of the debt rose from 8.8% to 8.9%.

In October 2014, corporate customers' debt on bank loans rose by 1.7%. Year-on-year growth for three months running remains close to the level of 10%, while on the basis of the results of October it amounts to 10.1%.

The quality of the corporate segment of the credit portfolio is much better than that of a retail one. In October, the share of the overdue debt in the total volume of the debt remained at the level of 4.1%, which is the minimum value in the period from the mid-2009. The ratio of provisions for possible bad loans to corporate customers to the total volume of the debt rose within a month from 6.5% to 6.6%, however, that value is lower than that which prevailed during a larger part of the year when that ratio exceeded 6.7%.

In October, interest rates on ruble loans to non-financial organizations (without taking into account loans extended by the Sberbank) amounted to their latest maximum this year. In October, loans for the period of up to 1 year and for more than a year were extended on average at the rate of 11.3% per annum and 12.87% per annum, respectively. From the beginning of the year, short-term loans to corporate customers appreciated by 1.7 p.p., while long-term ones, by 1.5 p.p.

Мikhail Khromov, Director for the Structural Research Center