Composition and dynamics of corporate troubled debt: Main trends

Aim. This study aims to structure the results of statistical research and develop a conceptual framework for understanding the structure of troubled debt among Russian companies.

Objectives. The work seeks to determine the dominant role of bank loans in business financing alongside the growing volume of corporate bond loans. It identifies trends in rising corporate lending and substantiates the higher-than-expected growth of overdue corporate debt in Russian banks’ loan portfolios. Additionally, the study explores the characteristics of bad and troubled debts, risky restructurings, their dynamics, and their share. It analyzes industry-specific patterns in corporate loans and overdue debts and examines the dynamics and structure of loan restructurings during acute crisis periods in recent years.

Methods. Using general methods of scientific knowledge, the criteria for the formation of troubled debts and their structuring, trends and priority fields of work with troubled debts are considered in various aspects.

Results. The dominant share of bank loans in the structure of business financing in the context of an increase in the volume of corporate bond loans has been established; the dynamics of increasing lending has been revealed, the trend of higher-than-anticipated growth of overdue corporate debt in the loan portfolio of Russian banks has been substantiated; the features of bad and troubled debts, risky restructurings have been identified, their dynamics and share have been studied. In addition, issues of industry specifics of issued corporate loans and accumulated overdue debt have been analyzed, and the dynamics and industrial structure of restructurings of bank loans of corporate borrowers during acute periods of crises in recent years have been studied.

Conclusions. Analyzing the causes of troubled debts and structuring the repayment process in stages offers insights into regulatory challenges and debt management strategies. Understanding the structure of troubled debt and applying effective settlement methods will facilitate more favorable outcomes in repayment efforts.

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