Bank of Russia Sees Deepening Pain for Firms With Growth Slowing

Russia’s central bank signaled a deterioration in corporate finances and an increase in problem debt, though predicted even a sharper downturn won’t endanger financial stability.

“With the economy slowing, credit risk is becoming the key vulnerability,” the Bank of Russia said in a report published Thursday. “The financial situation of both citizens and companies is on the whole stable, but previously accumulated risks are materializing, and more vulnerable borrowers are running into difficulties.”