Top Regions with Best Business Payment Discipline: A Closer Look
Businesses in Krasnoyarsk struggle to secure loans
While experts have revealed the regions with the top payment discipline among businesses, meaning they fall behind on the least number of payments to banks for corporate credit, let's delve deeper into this subject. The analysis was published by RIA Novosty. A significant variation in the percentage of past-due commercial debts was found among the regions: from as low as 0.05% to an alarming 76%.
The most financially responsible borrowers were discovered in the Chukotka Autonomous Okrug (0.05% of corporate credit debt overdue), Magadan Oblast (0.2%), Kamchatka Krai (0.3%), Zabaikalsky Krai (0.34%), and Yamalo-Nenets Autonomous Okrug (0.35%). Interestingly, despite having relatively small corporate credit portfolios - accounting for only 3.8% of the total corporate credit debt in the entire country, these regions are gems of financial discipline.
On the other hand, the highest percentage of overdue payments was observed in Nenets Autonomous Okrug (76.2%), which can be attributed to the struggles of a large-scale debtor. Additionally, high rates were found in Dagestan (41.9%), Karachay-Cherkessia (32.6%), Kabardino-Balkaria (28.8%), and Chechnya (18%).
The Kransoyarsky Krai finds itself among the regions displaying a low percentage of overdue corporate credit debt: 1.59%. However, its expansion of corporate credit portfolios was relatively insignificant, growing by merely 1.4% over the past year. This leaves the Kransoyarsky Krai in the Top 15 regions where businesses seem least enthusiastic to take on new credit.
Interestingly, the first ten regions experienced something known as "negative growth," with the Amur Oblast (-38.5%), Vologda Oblast (-30.9%), and Nenets Autonomous Okrug (-16%) being particularly notable in this regard, as all three saw a decrease in their corporate credit portfolios. The Kransoyarsky Krai closed out this group along with Kurgan Oblast (1.5%) and Murmansk Oblast (2.1%). Meanwhile, the Republic of Altai experienced the most substantial growth in corporate credit portfolios (93.9%), despite its much smaller share (0.03%) of Russia's overall corporate credit debt.
[Image: DELA, RIA Novosti]
- The report by RIA Novosti reveals that Chukotka Autonomous Okrug has the strongest business payment discipline, with only 0.05% of its corporate credit debt overdue.
- Contrastingly, Nenets Autonomous Okrug has the weakest business payment discipline, with an alarming 76.2% of its corporate credit debt overdue.
- Despite having a small corporate credit portfolio, accounting for only 3.8% of the total corporate credit debt in the country, the regions with the best payment discipline - Chukotka Autonomous Okrug, Magadan Oblast, Kamchatka Krai, Zabaikalsky Krai, and Yamalo-Nenets Autonomous Okrug - are a significant example of financial discipline in the industry.
- The Kransoyarsky Krai, which has a low percentage of overdue corporate credit debt (1.59%), has seen only insignificant growth in its corporate credit portfolios over the past year, ranking it among the Top 15 regions where businesses seem least enthusiastic to take on new credit.
