Russian banks have raised the alarm over the level of bad debts, international economic analyst Gogita Suramelashvili wrote on social media.
“They note that a large number of corporate and retail clients are unable to service their debt due to high interest rates,” Bloomberg writes.
Russian banks have trillions of rubles in bad debts on their balance sheets. Russian bankers believe that the Russian economy's prospects are deteriorating and that the banking system will face serious problems in the near future.
The situation is complicated by the Russian Central Bank's recommendation to commercial banks to restructure the debts of insolvent companies.
Russian bankers assess the current situation in the country as dangerous and note that if the situation does not improve, the risk of a crisis in the country's financial sector in 2026 is high," Suramelashvili writes.
