Russian GDP Shrinks 1.5% in February

Microfinance organizations in Russia have seen loan rejection rates drop to their lowest levels since 2022. However, major financial institutions are increasing requirements for loan reliability due to rising risks. Banks are now classifying loans as high risk if debt servicing exceeds 50% of a borrower's income. This shift follows new requirements for increased capital reserves to manage credit risk. The Bank of Russia has raised standards for loan reliability, specifically targeting high-risk borrowers. Loans where debt servicing exceeds 50% of income are now classified as high risk. Consequently, banks are less willing to approve credit under current high-interest conditions. Russia's GDP fell by 1.5% year-on-year in February. Presidential Administration Chief Maxim Oreshkin attributed economic dynamics to labor shortages rather than internet restrictions.