Corporate debt load: limits to growth

The regulator is planning a series of economic publications that may provide insight into the impact of lending on the Russian economy and corporate investment activity. Data will be broken down from a sectoral and regional perspective.

The series opens with an article titled ‘Lending and Russian industrial companies’ financial stability: microeconomic aspects’, by Sofya Donets and Anastasia Mogilat of the Monetary Policy Department, which was published in the July issue of ‘Money and Credit’, a BoR journal.

The authors’ computations offer estimates of the numerical limits to debt Russian companies can ramp up without risking their financial stability.

The findings will be of interest as corporate financial stability risk assessment and can be applied to corporate sector stress testing; they can also be of use to banks and non-bank institutions seeking a more subtle risk-weighted credit risk assessment.