ALL-TIME MAXIMUM DEBT BURDEN OF POPULATION IS REPORTED IN RUSSIA

The debt burden of Russians, according to the Central Bank, has reached a record high.  According to the information provided in the regulator's review, the amount of debt reached 11.9%, having updated the figure of March, according to the results of the first quarter of this year.

According to the Central Bank of the Russian Federation, the unsecured consumer loans played a decisive role in the increase in indicators, says the review. During the pandemic, there was an increase in loan agreements, while the real income of the population did not grow.

Despite the growth in the rate of mortgage lending, this fact did not have a significant impact on the increase in the debt burden.  The reason, according to the regulator, is compensation in the form of a reduction in interest rates on loans.

Debt load is the ratio of all loan payments to the total income of the population.

 In addition, the Central Bank of the Russian Federation indicated that the quality of the loan portfolio exceeds expectations that existed at the beginning of the pandemic.  The regulator also noted the desire to reduce the incentives of banks to issue loans to borrowers with an existing high debt burden, which is intended to lead to stabilization of the situation. 

According to the Equifax credit reporting agency, in March 2021, Russians took a record amount of consumer loans, reports Kommersant.  At the same time, the average loan amount exceeded 300 thousand rubles.