Russian bank lending growth may hit 10 percent this year, compared with annual growth of more than 50 percent before the economic crisis struck, Finance Minister Alexei Kudrin said Friday.
The Central Bank has eased monetary policy to encourage affordable lending to the real economy and help the country exit its first recession in a decade, although banks remain worried about the creditworthiness of would-be borrowers.
In addition, lackluster domestic demand is hampering companies' investment plans and high unemployment means many consumers are reluctant to take on new debts.
"Loans this year may increase by 5 percent, maybe 10 percent ... 5 to 10 percent is an optimistic forecast," Kudrin told a banking conference.
Banks' loans to non-financial organizations were down 6.5 percent in the year to Feb. 1, according to Central Bank data -- compared to growth of over 50 percent in the pre-crisis 2007.
Central Bank officials have forecast that lending will pick up in the second half of the year.
Sberbank, Russia's largest lender, on Thursday forecast that its loan portfolio may grow at a rate slightly higher than inflation -- which the government sees at around 7 percent this year.