Russian’s bad debt doubles
27 November 2015 (09:20)
UrBC, Moscow, November 27, 2015. The average amount of unsecured bad debt within Russia’s banking sector rose from 50,000 RUR to 99,500 RUR per borrower in the course of the year, Banki.ru refers to the collecting agency Sequoia Credit Consolidation as stating.
In the collectors’ terminology, bad debts are those which haven’t been repaid at least partially in over 900 days.
According to Dmitri Monastyrshin of Promsvyazbank, the increase in the average debt amount has to do with the population’s shrinking income. Rosstat reports people’s actual disposable income is dropping because of high inflation rates and the deteriorating labor market opportunities, all of which results in debt growth, Monastyrshin explains.
‘The greater the debt amount on an NPL, the more difficult it is to convince the borrowing party to cooperate and to get the debt fully paid off. This is especially true in cases when a particular loan was taken out to pay off an earlier one,’ says Sequoia Credit Consolidation’s President Elena Dokuchayeva.
In the collectors’ terminology, bad debts are those which haven’t been repaid at least partially in over 900 days.
According to Dmitri Monastyrshin of Promsvyazbank, the increase in the average debt amount has to do with the population’s shrinking income. Rosstat reports people’s actual disposable income is dropping because of high inflation rates and the deteriorating labor market opportunities, all of which results in debt growth, Monastyrshin explains.
‘The greater the debt amount on an NPL, the more difficult it is to convince the borrowing party to cooperate and to get the debt fully paid off. This is especially true in cases when a particular loan was taken out to pay off an earlier one,’ says Sequoia Credit Consolidation’s President Elena Dokuchayeva.
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