UrBC, Moscow, June 7, 2019. Head of Russia’s Central Bank Elvira Nabiullina said the increase in the amount of loans Russians had to pay out was brought about by poor living standards. This was the statement made at Saint Petersburg International Economic Forum, RT refers to the official as saying.

According to Nabiullina, the tremendous amount of bank loans the Russians have applied for and taken out in the last few years is not a bubble; rather, this comes from poverty issues. The Central Bank is now trying to slow the process down, but, as a matter of fact, the booming consumer lending market brings with it no actual risks of financial instability, Nabiullina says.

Now Russia’s Economic Development Minister Maxim Oreshkin said earlier that the considerable increase in the amount of consumer lending activity going on in the country was the primary risk factor for Russia’s economy entering a recession period.