The weighted average rates on ruble loans provided by Russian banks to non-financial small and medium-sized enterprises (SMEs) in June and July underwent sharp multidirectional changes depending on the period for which loans were provided, follows from the information posted on the website of the Central Bank of the Russian Federation.
In particular, on loans for up to a year, including on-demand loans, the rate, which rose from 9.38% in March to 9.87% in April, then gradually decreased – to 9.74% in May and 9, 34% in June. In July, the rate dropped immediately by 1.91 percentage points (pp). It can be assumed that in July, after the Central Bank cut the key rate at the end of June by 1 pp. government measures to support lending to SMEs also began to work.
The dynamics of the weighted average rate on long-term loans to SMEs differed somewhat. For loans for a period of one to three years, it increased in April to 10.56% from 9.83% in March, in May it decreased to 10.19%. In June, the rate fell by almost 4 pp. – up to 6.26% (obviously, concessional lending had an effect here earlier than on short-term loans). However, in July the rate increased by 2.11 percentage points. – up to 8.37%.
The rate on the “longest” loans – for a term exceeding three years – changed more smoothly. In April, it increased to 9.29% from 8.62% in March, but in May it was already slightly below the March level – 8.59%, in June it fell to 7.83%, in July – to 7.59%. That is, in June-July it became 1 pp less, as did the Central Bank's key rate.
The data on the weighted average rate excluding Sberbank loans (MCX: SBER) allows us to conclude that it was this largest market player that determined the sharpness of fluctuations in loan rates.
So, the rate on short-term loans in this case also increased in April – from 9.40% in March to 9.94%, in May decreased slightly, to 9.91%, in June it almost returned to the March level, amounting to 9.40% … In July, it decreased by 1.16 percentage points. – up to 8.27%.
At the same time, the rate on all long-term loans increased slightly in April – to 9.39% from 9.33% in March, in May it decreased by 0.64 percentage points. – up to 8.75%, in June – by 1.20 percentage points, up to 7.55%, and in July it increased by 0.56 percentage points, up to 8.11%. In the first two summer months, it decreased by 0.64 percentage points.