Credit load of Russians in 75% of the country’s regions exceeded the previous peak value for Godot

Credit load of Russians in 75% of the country’s regions exceeded the peak values of 2013-2014. This follows from the report of the Bank of Russia monetary policy.

“The growth of lending to households is constrained by a high debt burden, which in 75% of regions have already exceeded the peak of 2013-2014 years”, — stated in the text.

In may—July the pace of retail lending growth slowed in all Federal districts. The increase in the loan portfolio of individuals in July ranged from 15% to 27-28%.

In Crimea and Sevastopol, where the credit portfolio of physical persons increased by 65% and 81%, respectively. The Central Bank explained it “catch-up nature of the growth of consumer lending in these regions.”

Earlier experts of Bank of Russia warned that the nation’s growing debt load can carry risks for the welfare of citizens. The report stated that “there is a risk that credit growth is beginning to occur partly at the expense of already highly indebted groups”.

From calculations of the joint credit Bureau (OKB), which were submitted, it appears that in Russia, as of 1 July 2019, of 9.09 million people, or 15.7% of all debtors of banks had credit load above 50% of income.

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