Russians are increasingly struggling to repay loans taken out during the credit boom of 2023 to mid-2024.

Source:The Moscow Times, citing data from the Central Bank of Russia

Details:The volume and share of problem loans, including mortgages, consumer loans, and car loans, are rising rapidly. In the first quarter of 2025, problem loans grew by nearly 200 billion roubles (about US$2,5 billion), equivalent to approximately 2 billion roubles (about US$25,1 million) per day.

The Central Bank of Russia reports that banks have had to increase reserves due to this trend, with the cost of credit risk in retail banking rising from 2.1% to 3.6% over the three-month period. This figure is significantly above the historical average of around 2%.

Background: Russian statistics recently reported the first acceleration of inflation in six months, following the Central Bank of Russia’s decision to lower the key interest rate.

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