RusAg agribusiness finance hits record high

In the first nine months of 2021 RusAg provided Russian agribusinesses with RUB 1.2 trillion in loans, reaching a record high for the period under review. Within this figure, RUB 425.7 billion (35.3 per cent) was lent at subsidised rates, driving the volumes of subsidised loans and their percentage in the total loans up 31.8 per cent and 8 percentage points respectively.

In the first nine months of 2021 RusAg issued loans worth RUB 885.7 billion to large businesses and RUB 192.3 billion to average, small and micro businesses, generally on par with last year. The strongest growth was registered in loans to rural residents (up 6.2 per cent to RUB 127 billion).

‘As the flagship bank for agribusiness and rural communities, we ensure that credit does not dry up so that people and businesses can feel confident about the future, lead normal lives, raise children, launch and develop their businesses. Every third rouble from our loan portfolio we are loaning at a subsidised rate, which makes our financial products affordable to the broader public. Our special focus is on seasonal works finance – our market share here is 72 per cent. And in some regions we are the only source of support for farmers in this segment,’ said Boris Listov, RusAg’s Chairman of the Board.

Loans are made available for investment purposes (such as construction, upgrade and renovation of vegetable storage and livestock facilities, purchase of equipment and livestock) and working capital finance. Financing has risen largely because loans are now more affordable to farmers and because RusAg has streamlined its loan application and review processes.

Over the first nine months of 2021 RusAg issued RUB 427.4 billion in seasonal works finance (+ 23.8 per cent on the same period last year), of which 64 per cent was made available at subsidised rates.

Since the beginning of 2021, RusAg has ramped up support for export-oriented companies by issuing them loans worth RUB 371.2 billion (+ 28.5 per cent on the same period in 2020). The number of export-oriented companies working with RusAg has risen 10 per cent to 1,431 entities/groups of companies.