The consumer lending boom that swept Russia amid falling incomes of the population continues to bear its poisonous fruits.
The number of bankrupt citizens in the first quarter of 2021 reached a new record: 40,569 people went through bankruptcy proceedings – 1.8 times more than in the same period a year ago, Interfax reports, citing data from Fedresurs.
Compared to 2019, the rate at which the bankrupt army is growing has tripled. In total, during the existence of the judicial procedure for personal bankruptcy (from October 2015 to March 2021), 322,849 Russian citizens became insolvent.
This, however, is only the tip of the iceberg, says Aleksey Yukhnin, head of the Fedresurs project: “The number of potential bankrupts is at least three times the number of those who have gone through the procedure”.
In absolute terms, Moscow is the leader in terms of the number of new bankrupts – 2224 people in January-March 2021 (53.3% to the first quarter of 2020). This is followed by the Moscow region – 2176 (+ 70.1%), Krasnodar region – 2109 (+ 79.3%), Samara region – 1887 (+ 97.4%), St. Petersburg – 1747 (+ 91.3%) and Bashkortostan – 1,720 (+ 76.2%).
The credit boom in Russia continues to pick up steam, even as the financial situation of borrowers has deteriorated sharply: real disposable income fell by 3.5% and returned to 2010 levels, and wages in dollar terms fell to the lowest in 11 years.
At the end of 2020, banks issued another 2.8 trillion rubles of new loans to individuals, and the total debt of the population to the banking system for the first time exceeded 20 trillion rubles.
According to Central Bank statistics, banks kept a pause in consumer lending from April to July last year, but since August they resumed issuing at a rate of 200-500 billion rubles a month.
In January-February 2021, the credit mania entered a new round: in two months, the Russians took 967 billion rubles of new debt – twice as much as in the same period a year earlier.
More than 50% of all cars and about 25% of all household appliances are sold on credit in Russia (Frank RG estimate). Mortgage debts of the population have exceeded 9 trillion rubles and continue to grow amid benefits from the state and rush demand in the primary and secondary markets.
Credit card debt exceeded 1.6 trillion rubles at the end of 2020, setting a new all-time record.
The level of debt load rose to a historical peak, which the Central Bank calculates as the ratio of loan payments to income. Now the population gives banks for debt servicing 11.7% of all money received.
Mortgages are the most expensive for Russians: on average, a family pays 20-21 thousand rubles a month on a mortgage, or 25-30% of their income, according to the analytical center DOM.RF.
Millions of citizens who are unable to pay off end up in the work of the collectors, and then – to the service of bailiffs. At the beginning of February 2021, the FSSP initiated 8 million enforcement proceedings on bank debts of individuals for a total of 1.8 trillion rubles.
Over the year, the number of debtors increased by 2.2 million, and the amount of debt in work – by 200 billion rubles.