Kommersant: The Central Bank announced imbalances in the Russian economy due to preferential lending
The influence of the preferential lending program is associated with the emergence of significant imbalances in the Russian economy, and the volume of loans issued at reduced rates approached eight percent of GDP, follows from the new version of the draft main directions of monetary policy for 2025–2027, sent by the Bank of Russia to the State Duma . About this writes “Kommersant”.
The Central Bank, in particular, indicated that subsidized loans increase the burden on other borrowers and reduce the impact of the key rate on lending, demand and inflation, and the corresponding instrument is effective only for a limited time and only for short-term loans. Otherwise, the total costs of subsidizing such loans may be comparable to the amount of loans.
It is noted that in addition to the growth of budget expenditures, preferential loan programs cause a “substitution effect”, in which they are used by those who would be ready to attract loans on the market, while a reduction in the rate for some groups of borrowers is accompanied by an increase in it for others, resulting in The preferential loan is paid by both taxpayers and “non-concessional” borrowers, the regulator emphasizes.
Earlier, the head of the Ministry of Economic Development, Maxim Reshetnikov, told the Federation Council that the authorities’ ability to subsidize interest rates is now limited and the point is to “serve the 18 trillion portfolio of subsidized loans that we have taken on.” The minister clarified that the conditions for loans issued under existing programs will not change, noting that the distribution of risks between the budget and business must be fair.
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