In Russian corporate debt increases have occurred in interfirm trade credits

Rosstat reports that trade debt of large and medium-sized firms to domestic suppliers of goods and services has edged up gradually in recent years. Overdue payments on the trade debt have levelled off this year at around 10 %, down slightly from levels in the wake of the 2015 recession.

The volume of interfirm trade debt now exceeds total corporate foreign debt, which is partly restricted due to sanctions on foreign financing. The trade debt, however, has also increased relative to domestic corporate bank debt, even if bank liquidity is good. The situation reflects weak interest among firms to borrow to finance fixed investments.

Main categories of Russian corporate debt

Sources: Bank of Russia and Rosstat.