Cbank: Growth of lending in 2020–2022 bears no risks for prices

MOSCOW, Dec 23 (PRIME) – Russia’s crediting growth in 2020–2022 will not bear any risks for the pricing stability as the debt burden in the economy will not increase to the levels that threaten financial stability, the central bank said on Monday in a report on its monetary policy.

The regulator expects a steady slowdown in retail lending due to the restrictive measures on the growth of individuals’ debt burden and saturation of the retail lending market. Softening of pricing conditions of lending will support expansion of corporate and mortgage lending.

“Taking into account the factors, lending activity will continue rising in 2020–2022 with dynamics that meet improvements of effective demand and that don’t create the risks for pricing stability,” the report read.

“The debt burden in the economy will rise steadily, forming at the levels that bear no threat to the financial stability in the economy,” the authority said.

The central bank’s baseline scenario assumes that the Western anti-Russian sanctions will be in place throughout 2020–2022, and that the U.S. dollar will fall slowly against the euro.

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