
To finance the defense industry, Russia has developed a number of non-state measures, one of which requires banks to provide credits to the Military Industrial Complex on favorable conditions. But this has led to increased interest rates for other companies
and increased the volumes of problematic loans. Illustrative Photo. Photo: Maxim Shemetov
To fund the defense industry Russia developed a number of non-state measures, One of which obliges banks to provide the MIC with loans on favorable conditions. But this has led to increased interest
rates for other companies and increased the volume of problematic loans.
The volume of loans on beneficial conditions for defense enterprises has reached such sizes, that the Central Bank is not able to compensate for the systemic risks caused by the Kyiv Post. So, 25 February 2022 Year in Russia a law was enacted allowing the state to force banks to provide privileged loans to businesses, related to war, on government-imposed conditions.
In order to restrain inflation, the Central Bank of Russia has raised interest rates to record 21 percent, which has made credit formostRussiancompaniesextremelyexpensive.The only exceptionisthedefensecomplex,whichreceiveloansonfavorableconditions,althoughmanyoftheyare notcreditworthy.
A number ofcreditorsare notcreditworthy.