Foreign sanctions hit Russian banks

 

The Russian Central Bank admitted that sectoral sanctions imposed by the U.S. and the EU had a “limited negative” impact on Russian banks. The Central Bank explained that restrictions to access to foreign financial market caused rising prices for funding, problems for debtors, aggravation of currency volatility rate, ITAR-TASS reports.The overdue debt for loans, deposits and other accounts increased by 18.5%, compared with 6.6% in the same period in 2013. The proportion of overdue debts to all loans totaled 3.8%, compared with 3.5% at the start of the year.Russia’s largest banks (Sberbank, VTB, Gazprombank, Rosselkhozbank, Bank of Moscow and Vnesheconombank) were hit by EU and U.S. sanctions in July 2014.

 

The Russian Central Bank admitted that sectoral sanctions imposed by the U.S. and the EU had a “limited negative” impact on Russian banks. The Central Bank explained that restrictions to access to foreign financial market caused rising prices for funding, problems for debtors, aggravation of currency volatility rate, ITAR-TASS reports.

The overdue debt for loans, deposits and other accounts increased by 18.5%, compared with 6.6% in the same period in 2013. The proportion of overdue debts to all loans totaled 3.8%, compared with 3.5% at the start of the year.

Russia’s largest banks (Sberbank, VTB, Gazprombank, Rosselkhozbank, Bank of Moscow and Vnesheconombank) were hit by EU and U.S. sanctions in July 2014.