Overdue debt on retail loans (excluding mortgages) in banks has increased by 6.4% since the beginning of 2024. The growth dynamics turned out to be 1.6 times higher than that for the entire year 2023 (4.3%). These data are provided by the collection agency “Debt Consultant” based on an analysis of materials from the Bank of Russia.
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Excluding mortgage defaults, the total overdue retail debt as of June 1, 2024 amounted to more than 1.132 trillion rubles. Since the beginning of the year, it has grown by 68.6 billion rubles, while in the 12 months of 2023 it increased by 43.7 billion rubles.
Overdue debt refers to loans whose payments were suspended more than 90 days ago. Retail loans are understood as any credit debt of individuals with banks, with the exception of mortgages: consumer loans in cash, for the purchase of goods, credit card debts, car loans.
“The acceleration in the growth of non-performing debt was expected. Despite the efforts of the Bank of Russia, the issuance of loans does not decrease; the total portfolio of retail loans has grown by 9% since the beginning of the year. Therefore, non-performing debt will also increase. If the dynamics continue, the deterioration of the solvency of borrowers this year may exceed the negative indicators of 2022, when the volume of non-payments increased by 16%,” said Denis Aksenov, CEO of Debt Consultant.
Experts also note that the standard reasons for the appearance of overdue debts (job loss, financial illiteracy) can increasingly be added to the impossibility of obtaining refinancing, when the bank does not grant the next loan if the borrower has reached a high degree of debt burden.
The main regions of Russia with the largest absolute increase in overdue debt were Moscow, Moscow Region, Krasnodar Territory, St. Petersburg and Bashkortostan.
As previously reported, from September 1, 2024, floating rates on loans and borrowings will be limited to the population and micro-enterprises. Variable loan rates will be available only if certain conditions are met: for mortgage loans, the minimum rate is equal to 200 average monthly salaries of the borrower, the maximum – to 1,000 average monthly salaries. Duration – no more than 20 years; for consumer loans, the amount must be 200 times the average monthly salary.
Author:
Anastasia Marina
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
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