Experts Confirm Over 40% Of Low-Income Russians Struggle With Loan Pay Off

12 March 2019 (09:27)

UrBC, Moscow, March 12, 2019. Higher School of Economics’ analysts report that over 40% of Russians in the low-income and medium-income groups are finding it extremely difficult to handle their bank loans. Volga Federal District, Southern Federal District, and Siberian Federal District are currently the three Russian constituencies with the greatest number of loan-burdened people living there.

According to Kommersant, the amount of loans issued to private customers rose by 22.8% last year, even though people’s disposable incomes declined by 0.2%. Unsecured loans make up under 50% of the private borrower loan book at the moment, but this loan type is now getting issued increasingly more often at more or less the same speed.

Now the head of Russia’s Central Bank Elvira Nabiullina warned about the dangers of private individuals juggling too many loans at once in February 2019; Fitch Ratings also voiced their doubts the consumer loan market would slow down any time soon.

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