the Debt burden – the ratio of regular loan payments to disposable income. The previous high this index reached in 2014, when after the rapid growth of consumer loans began to decrease in incomes of the population. By 2016 the debt load decreased to 8.4% and then again started to grow. In this regard, the Bank of Russia in 2019 made it more expensive for banks, the loans to borrowers, who pay to service the debt over half of revenues. The growth rate of consumer loans slowed down, but in the end still led to a high debt load.
For the first quarter of this year the share of loans with over-the-top indicator of debt burden (over 80%) have grown from 23 to 23.3%. “It can be expected that such borrowers are likely to need restructuring,” – said the Bank of Russia.
On April 1, the share of overdue loans (with a maturity more than 90 days) remained stable at 7.9% on consumer credits and 1.4% on the mortgage. However, in April, to late came out on average a third more borrowers than in March, said the first Deputy Chairman of the Bank of Russia Ksenia Yudaeva at a press briefing on “financial stability Review”.
at the same time began a campaign of mass debt restructuring of natural persons within the framework of the law on credit holidays and Bank requirements. For the period from 20 March to 6 may, the banks received approximately 1.4 million cases of restructuring (of which 210 thousand in the framework of the law on credit vacation), more than half of the requests were met, the restructuring already affected 1.2% of existing contracts.
the size of the total debt subject to the vacation credit, the Bank of Russia is estimated at 7 trillion rubles. Need loan vacation there mainly of people working in the most affected industries, they may contribute up to a third of existing loans. Of the borrowers cannot recover their financial situation, and banks will be forced to write off loans, says the Bank of Russia. But the experience of the law on mortgage holidays taken in the last year, suggests that a substantial part of the people benefiting from the right to defer payments, will be able to return to the debt repayment schedule, said the Director of the financial stability Department of the Bank of Russia Elizaveta Danilova.
thus, according to the Central Bank, banks have accumulated significant capital buffers (over 5 trillion) to cover losses and repair credit. The banks willingly went to meet the borrowers, the Central Bank allowed them until September 30 to form additional reserves on restructured loans and disbanded the accumulated banks macroprudential buffer mortgage (126 billion rubles on April 1). Buffer on consumer credits (539 billion rubles., which corresponds to 5.5% of the portfolio) is much higher and the Central Bank “as of regulatory possable��iy” can consider the gradual dissolution of this buffer, which can provide coverage of realized losses on the loans, the report said the controller.
