Credit conditions have become stricter in Nizhny Novgorod region, Russia

Interest rate has increased together with requirements to the borrower.

22.Aug.14 10:35 AM
By Abigail Richards
Photo Toinnov.com

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Credit conditions have become stricter in Nizhny Novgorod region, Russia

The main department of Central Bank in Nizhny Novgorod has published results of banking market participants’ examination. Such examination takes place every quarter of the year.

According to Central Bank report crediting conditions have become stricter in the second quarter of 2014. These limitations are the toughest over the last few years. The major affect is made on corporate business. Consumer crediting is another branch which may suffer from such limitations and restrictions.

Such restrictions of banking credit conditions resulted in increased interest rate. At the same time requirements to borrowers have also become tougher. This is all in order to guarantee high level of their solvency. The average growth of interest rate for non-financial organizations has increased up to 11.5%. Interest rate for individuals is on the same level at the moment.

In addition banks have restricted all other conditions of crediting. For example, mortgage lending conditions have become stricter for the first time during the last two years. Interest rate in this sphere has been increased by 23% of all Russian banks which operate in Nizhny Novgorod region.

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