Corporate lending in Russia increases 1.9% in April, retail lending rises 1.6%

MOSCOW. May 28 (Interfax) - The growth rate of corporate and retail loan portfolios in Russia in April remained near March's levels, the Russian Central Bank said in its review of the country's banking sector.

The corporate loan portfolio grew 1.9% (1.5 trillion rubles) in April after rising 1.8% in March. As of May 1, the value of loans to legal entities totaled 77.4 trillion rubles.

Most of the corporate portfolio growth was provided by ruble loans (+1.1 trillion rubles, or +1.8%). Of this, more than a third (0.4 trillion rubles) went to developers for the project financing of housing construction. In addition, a significant volume of loans was issued to transport, energy and telecommunications companies, as well as to executors of government contracts, including for the completion of previously started investment projects.

There was an acceleration in the growth of foreign currency loans in April, the CBR said. They increased 2.5% (318 billion rubles in ruble equivalent) during the month after an increase of 0.5% in March. This growth is likely due to individual exporting companies looking to attract loans at lower rates, the regulator said.

The retail loan portfolio grew 1.6% (549 billion rubles) in April after increasing 1.7% in March. The value of the portfolio totaled 35.4 trillion rubles as of May 1.