Corporate lending dynamics below benchmarks in Jan, important to avoid imbalances - Putin

MOSCOW. Jan 22 (Interfax) - Corporate lending slowed in December 2024, and portfolio dynamics have been below the performance benchmarks in January, Russian President Vladimir Putin said at the government's first meeting on economic issues this year.

"I have already said that it is necessary to achieve moderate inflation and avoid overall imbalances in the economy on the consumer market. It is important here to monitor the state of demand closely, its sector structure, as well as the volume of lending. In December, the dynamics of the corporate loan portfolio slowed significantly, and they have been below the performance benchmarks in January, while the quality of issued loans has remained high. The share of overdue debt [...] is 2.6% in the corporate portfolio, and it is 3.7% in the retail portfolio. These indicators were stable throughout last year," Putin said.

He said that the banking sector has sufficient capital reserves, is robust, and has the necessary resources to finance and develop Russia's economy.

"It is clear that a decline in lending activity could create risks for long-term growth. We discussed this just recently at a meeting with businesses. It is important not to allow these imbalances, and to ensure an increase overall in the lending portfolio that is necessary for robust economic dynamics and that also allows achieving the Central Bank's inflation targets. This is not an easy task, though we must strive for it," Putin said.

He said that it is necessary to work with each sector specifically, because the overall picture may show normal growth in aggregate demand in the economy, though the situation could differ in individual sectors.