27.03.2020, 10:57
Moody's Estimates Losses of Russian Banks due to Loan Delays
Source: OREANDA-NEWS
OREANDA-NEWS. Banks may receive less than 5-7.5% of annual profits after deferring credit payments, according to a review by Moody's. "In the scenario of a prolonged economic downturn, we assume that at least 10% of all retail borrowers will be eligible for a grace period, and banks will lose or receive late (depending on restructuring conditions) more than 100 billion rubles of interest income, which is 5% of annual profit sector", the material says.
The agency also notes that, given the scale of the spread of coronavirus and the severity of quarantine measures, 20% of all small and medium-sized enterprises can apply for credit holidays, and banks can receive less than 50 billion rubles in interest income, that is, another 2.5% per annum sector profits.
Analysts expect the deferral of payments to last at least six months. Russian President Vladimir Putin in his address on March 25 proposed the introduction of credit holidays for citizens whose income fell by 30%.
The agency also notes that, given the scale of the spread of coronavirus and the severity of quarantine measures, 20% of all small and medium-sized enterprises can apply for credit holidays, and banks can receive less than 50 billion rubles in interest income, that is, another 2.5% per annum sector profits.
Analysts expect the deferral of payments to last at least six months. Russian President Vladimir Putin in his address on March 25 proposed the introduction of credit holidays for citizens whose income fell by 30%.
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