S&P sees Russian bad loans spiking at 17-23pc of loan portfolio

26 Feb, 2015

MOSCOW: Russia's banking system may face a spike in bad loans to 17-23 percent of its loan portfolio in 2015 from around 8 percent last year, Standard & Poor's ratings agency said on Thursday.

The agency added that according to its base scenario, Russian banks may be forced to set aside around 2.5 trillion roubles ($41 billion) to cover potential bad loans. Under its negative scenario, bad loans may reach 35-40 percent, S&P said.

Copyright Reuters, 2015

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