In Kyrgyzstan and Russia, loans for businesses are cheaper than for individuals

Only in Kyrgyzstan and Russia are loans in national currency cheaper for legal entities than for individuals. This is evidenced by data on weighted average interest rates in the countries of the Eurasian Economic Union.

Thus, in Kyrgyzstan in 2024, short-term loans to individuals were issued at an average rate of 24.5% at the beginning of the year and 21.9% at the end. However, for legal entities, the cost of these loans ranged from 17.7% to 18%.

The same trend applies to long-term loans, with businesses borrowing at an average rate of 17.2-18.4%, while individuals borrow at 20.6-23.7%.

The situation is similar in Russia, where individuals take out short-term loans at 23.6–28%, while legal entities have access to resources at 17–22.6%.

In other EAEU countries, the trend is reversed. In Armenia, Belarus and Kazakhstan, individuals can count on lower rates than businesses. For example, in Kazakhstan in the fourth quarter, long-term loans to the population were issued at 17.2%, while for companies they were already at 23.2% (short-term loans for businesses were cheaper than for individuals).

The anomaly of cheaper loans for businesses in Kyrgyzstan and Russia can be explained by state support for businesses. Banks are implementing state programmes with reduced rates aimed at stimulating entrepreneurial activity and investment projects, which is reflected in the weighted average rates.