MKB Identifies Problematic Loans Worth $8 Billion

Moscow Credit Bank (MKB) reported an increase in loan defaults, amounting to 691 billion rubles (approximately $8 billion) at the end of June. This represents over 27% of all loans issued to corporate clients. In the first half of the year, the volume of problematic loans increased by 28% or $1.75 billion (151 billion rubles). Overdue debts reached $3.2 billion (277 billion rubles), rising by 70% since the beginning of the year. MKB is linked to the state-owned company Rosneft, which rescued the bank from bankruptcy in 2017. Analysts expect that Rosneft or the Central Bank of Russia will again support the bank with financial injections. The crisis of loan defaults is escalating across the entire banking system in Russia, where 12% of assets have already been recognized as problematic. Since the beginning of the year, citizens have withdrawn over $30 billion (2.6 trillion rubles) from banks.

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