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Bank of Russia notes corporate lending growth in July

"About 0.2 trillion rubles ($2.2 bln) were received by companies paying dividends," the Bank of Russia indicated

MOSCOW, August 22. /TASS/. The portfolio of corporate loans of Russian banks climbed to 80.7 trillion rubles ($882.8 bln) and showed growth by 2.3% or by 1.8 trillion rubles ($19.7 bln) in July 2024, the Bank of Russia said.

"The corporate portfolio increased by significant 1.8 trillion rubles (+2.3% after +1.5% in June and +1.4% n May, net of a large bridge loan). The incremental growth rate was provided by ruble-denominated loans (+1.7 trillion rubles ($18.6 bln), +2.6%) to companies from a wide range of industries. Loans were largely disbursed for replenishment of the working capital and financing of investment projects, including acquisition of new equipment for production processes optimization," the Central Bank said.

"About 0.2 trillion rubles ($2.2 bln) were received by companies paying dividends. Furthermore, according to preliminary data, developers within the framework of project financing for housing construction accounted for 0.3 trillion rubles ($3.3 bln) of incremental growth," the Bank of Russia indicated.

Currency-denominated loans grew by "moderate" 0.8% or 0.1 trillion rubles ($1.1 bln) in the ruble equivalent in July after the drop by 2.7% in June.