The rate of bad loans in banks might be equal to 20%. Nina Kozlova‘s comment in “Gazeta.ru”

Russian banks have a very high rate of overdue debts. It is estimated to be 10%. However, given restructured loans, the figure might be significantly higher, namely around 20%. A significant amount of refinanced loans is the potential risk to banks, and many credit institutions ignore and persistently hide it according to experts.

Nina Kozlova

General Director of FinExpertiza

“When overdue amounts begin to grow, banks change the terms of current loan agreements or cover one loan with a new loan, which formally allows them not to show the debt as overdue one. Corporate sector participants have been applying this approach for a long time. The history of large-scale proposals for restructuring of loans to individuals is shorter”.