Corporate lending grows around 1% since start of year - Central Bank of Russia deputy governor

MOSCOW. May 29 (Interfax) - The growth of corporate lending over 5M 2025 amounted to around 1%, and there is no credit contraction taking place, Central Bank of Russia Deputy Governor Olga Polyakova said during the 7th Congress of the Association of Russian Banks.

"Although lending is slowing down across all segments, we are not talking about a credit contraction at this point. In our view, growth has become more moderate, and overall it aligns with our medium-term forecast," Polyakova said.

"Regarding corporate lending, loans have slowed down. Over the first four months of the current year, they increased approximately 1%. The data provided here for four months is 0.8%. But we are already looking at May, and this figure is around 1%," she said.

Tight monetary conditions and increased budget spending constrained the dynamics at the beginning of the year, but the Central Bank observed a recovery in credit demand in March and April, she said.

"In the retail segment, we are also seeing the expected slowdown, including under the influence of our own regulatory decisions aimed at limiting risks. This includes the tightening of macroprudential regulation and restrictions on high-risk mortgage schemes," she said.

Mortgage debt increased by nearly 100 billion rubles or 0.4% in 4M, she said.

"In consumer lending, the portfolio has contracted, and this segment, in our opinion, will continue to slow down. For the year as a whole, we expect roughly zero dynamics," she said.

At the end of April, the Central Bank maintained its forecast for lending in the corporate and retail segments for 2025. Corporate lending is expected to grow 8%-13%, retail lending 1%-6%. The forecast for growth in mortgage lending was also kept unchanged, at 3%-8%.