Russian Agricultural Bank increased the volume of concessional lending to agribusiness in the 1Q 2021 by 1.5 times

Russian Agricultural Bank (RusAg, the Bank) provided the agribusiness with RUB 437.1 billion of loans in 1Q 2021, exceeding the result for the 1Q 2020 by 10.4%. Of these, RUB 132.7 billion or 30.4%, borrowers got at a subsidized rate. In the current year, the volume of concessional lending increased by 50.8% and its share - by 8.2%.

In 1Q 2021, RusAg increased lending to large business by 4.9% to RUB 310.1 billion, SME by 10.6% to RUB 81.4 billion compared to the same period of the last year. Over the same period, lending to rural residents increased by 70.7% to RUB 45.6 billion.

Borrowed funds are used both for investment purposes (construction, modernization and reconstruction of vegetable storage facilities and livestock complexes, purchase of equipment and animals), and for replenishment of working capital. The increase in the volume of financing is largely due to the increased availability of credit funds for farmers.

"More than 70% of funds loaned to large business clients who provide the basis for Russia's food security. At the same time, we continue to increase the rate of SME (small, medium and micro businesses) lending. RusAg’s mission has been unchanged for 20 years – to provide the agribusiness with high quality and long-term financing. Thus, we contribute to strengthening the food security of our country, one of the most important components of national sovereignty," said Boris Listov, Chairman of the Management Board of RusAg.

In 1Q 2021, the Bank issued RUB 159.8 billion for seasonal work (+4.6% compared to the 1Q 2020), of which about 50% was provided on preferential terms.

"At the same time, the market share of RusAg in seasonal work financing increased to 81.4%. The experience of the last year’s pandemic has shown how important it is to finance spring field works both timely and sufficiently. This is the foundation, upon which the success of the entire agricultural season is built," mentioned Boris Listov.

In 1Q 2021, the Bank also strengthened support of export-oriented companies, providing them with RUB 116 billion (+7% compared to the same period of 2020). The total number of export-oriented companies cooperating with the Bank increased by 46 since the beginning of the year and amounted to 1,388.