{"id":157119,"date":"2025-09-24T07:57:10","date_gmt":"2025-09-24T07:57:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/157119\/"},"modified":"2025-09-24T07:57:10","modified_gmt":"2025-09-24T07:57:10","slug":"russians-cut-bank-debt-as-lending-slows-after-credit-boom","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/157119\/","title":{"rendered":"Russians Cut Bank Debt as Lending Slows After Credit Boom"},"content":{"rendered":"

Russian households reduced their debt burden in August, with outstanding bank claims on the population down 1.2% year-on-year, the Central Bank said<\/a>.<\/p>\n

Total household debt stood at 39.2 trillion rubles ($460 billion,\u00a0according to spot foreign exchange market data\u00a0published<\/a>\u00a0by Reuters), up 0.3 trillion rubles on the month but far below the pace of borrowing seen in 2024.<\/p>\n

The annual growth rate of household debt fell to its lowest in nine years. Adjusted for inflation of more than 8% over that period, real household indebtedness decreased by nearly 10%, the regulator noted.<\/p>\n

Tighter conditions have curbed demand following a credit boom that saw household loans grow<\/a> 10 trillion rubles, or 37%, between early 2023 and mid-2024.<\/p>\n

The cancellation of subsidized mortgages, a record-high key rate of 21% and restrictions on retail lending all slowed growth.<\/p>\n

Annual lending growth had dropped to zero by June and turned<\/a> negative in July as consumers mainly repaid existing loans rather than taking new ones.<\/p>\n

Lending showed signs of recovery after the Central Bank cut its key rate to 18% in late July, later cutting it to 17% in September.<\/p>\n

Car loans are growing and mortgage demand, including for non-subsidized products, is reviving, said<\/a> Kirill Tremasov, an adviser to the Central Bank governor.<\/p>\n

Lower inflation and expectations of further rate cuts have helped ease borrowing costs, he added.<\/p>\n

The contraction in consumer lending portfolios has largely halted, though volumes remain nearly half of last year\u2019s levels after a sharp fall in late 2024, said<\/a> Ivan Uklein, senior director at rating agency Expert RA.<\/p>\n

A further cut in the key rate to 15-16% by year-end could support a gradual rebound, though not to 2024 highs.<\/p>\n

The Central Bank forecasts<\/a> retail loan portfolios to grow at 1-4% in 2025, with mortgages rising 3-6% and other lending flat or declining by up to 2%.<\/p>\n

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