High interest rates in Russia are pushing individuals and small businesses desperate for loans into the hands of fraudsters. The Central Bank’s decision to reduce the key rate to 20% has not alleviated the problem, as banks remain selective in lending, forcing those in need to seek funds from illegal organizations.

The high key interest rate, previously at a record 21%, has led to a decrease in lending by banks. This situation disproportionately affects small and medium-sized businesses and individuals who lack access to traditional loans or the ability to place funds in bank deposits.

Experts note that the fight against high inflation has consequences, including a decline in productivity and investment. Many industries and large businesses are suffering due to the insufficient number of loans being issued, impacting their income.

Banks have also begun to change the terms of deposits, lowering rates and making offers less attractive, signaling potential problems in the banking sector due to prolonged high rates. The Russian Union of Industrialists and Entrepreneurs believes a further reduction to 19% would be optimal for maintaining economic growth.

While the Central Bank is monitoring the situation, experts predict further easing of the key rate in the future to facilitate business development and growth, preventing potential defaults. However, some analysts believe that significant rate cuts are unlikely until closer to autumn, despite the ruble’s recent appreciation against the dollar.