Lora Nakoryakova, Partner at the Center for
According to the publication, the Central Bank’s tough policy has not reduced the demand for loans among Russian companies. The level of business credit dependence has reached 52%, which corresponds to the maximum value in 2020. Despite the rising cost of loans and growing defaults, businesses continue to borrow on the back of shortage of own funds. Borrowing was 52.1% in 2020 but then declined to 50.9% in 2021 and 48.5% in 2022. Construction has become the most leveraged industry, where 77.3% of capital is formed at the expense of borrowed funds.
Lora Nakoryakova noted that in the context of a high key rate, which is likely to remain at the current level for the next two years, businesses, especially in the area of import substitution, objectively need support from the government. She suggested a number of measures, including financial assistance, such as interest rate subsidies, deferred payments and tax vacations, as well as