Central Bank expects lending to resume under new economic conditions in February
TULA. Feb 5 (Interfax) - The Central Bank of Russia expects lending to resume in February under the new economic conditions, Central Bank Deputy Governor Mikhail Sukhov told journalists on Thursday.
"The foreign currency loan portfolio increased by $3.7 billion in December, which has to do with all the deals by our enterprises to substitute for financial resources raised on foreign markets. The banking sector proved capable of supplying liquidity to enterprises, concluding new loan agreements," Sukhov said.
The Central Bank raised the key rate to 17% annually in mid-December, compelling banks to adjust their interest rate policy and even to suspend issuing loans. In January the Central Bank board of directors cut the rate to 15%, which will help reduce the risk of excessive economic cooling and resume lending.
From the standpoint of ruble lending, there has been a different reaction: higher interest rates and a halt to consumer lending, Sukhov said.
"I expect that in February, everything will resume under the new economic conditions," he said. "For various products - somewhere at the beginning of February, the end of February or early March - lending will resume, because there is no other alternative," he said.
In December 2014, the total of outstanding, unsecured consumer loans declined for the first time on record, by 170 billion rubles to 6.4 trillion rubles, Sukhov said.
"In December, unsecured consumer loans declined even in absolute terms. I think that trend is likely to continue in January. I think that the structure of lending will change greatly. Those banks that offer resources on reasonable terms will receive additional advantages on the market because, clearly, people will apply primarily at those banks that give inexpensive loans. This is a sort of stagnation in restructuring," he said.
"As for cards, I think, everything is exactly the same: cards issued under payroll direct deposit projects and to regular clients will continue operating," he said. "There is no reason to expect serious growth here. Clearly, robust growth under any elevated coefficients is not going to happen any time soon. Most likely, [the segment] will find it difficult to reestablish itself in this structure even after this turbulence ends," Sukhov said.