Specifics of Foreign Lending to Russian Non-Bank Institutions

Abstract

The article is devoted to the characteristics of lending by non-residents to Russian corporations (other than banks). A quantitative and qualitative assessment is given for such types of foreign lending as loans received through the issuance of Eurobonds, bank loans, and for the phenomenon of debt reorganization, for the period from July 2016 to June 2017. International approaches to accounting of certain types of debt reorganization and estimation of payment schedule components are reviewed, the cost of the largest external borrowings is calculated. The principles of foreign lending are explored in the context of the statistical activity at the Bank of Russia: external debt burden is analyzed within the relevant balance of payments items and international investment position of the Russian Federation. The article concludes that the debt reorganization has a high weight in the borrowings and repayments of Russian non-banking corporations, and that new loans are not enough to refinance current liabilities.