Loans at a floating rate make up about 40% of the entire corporate portfolio, Izvestia was told at the Central Bank.
They clarified that approximately 85% of such loans are to large companies, so most borrowers will continue to service loans well. In addition, the regulator previously advised banks to restructure loans to customers who have encountered difficulties due to sanctions, without the need to reassess the quality of such loans and build up reserves.
However, the business association “Business Russia” noted the risks for companies in the event of an increase in non-fixed rates on loans. They are preparing proposals to support business, which will be sent to the leadership of the Central Bank and the government, said Anton Danilov-Danilyan, co-chairman of Business Russia.
The organization, among other things, plans to apply with a request to refinance loans at rates below 10%.
If you reduce the cost of a loan for manufacturing companies that have been on the market for a long time and are engaged in non-financial activities, then you can count on the absence of a flow of funds into the foreign exchange market, which the Central Bank wants to avoid by raising the rate, Anton Danilov-Danilyan believes.
Due to the increase of the Central Bank of the key rate to 20%, the non-fixed rate on corporate loans may increase by 1.5-2 times, estimated Teimuraz Vashakmadze, Associate Professor of the Department of Business and Management Strategy at the Institute of Business and Business Administration (IBDA) of the RANEPA.
He noted that the level of debt load and the size of the already repaid share of the loan will determine how negatively the rate increase will affect the business.
Read more in the exclusive Izvestia article:
From small to large: rates could jump on 40% corporate loans
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