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Thursday, October 27, 2016

Banks will reduce lending rates, the population will not be easier

56 banks intend to reduce interest rates on all types of loans in the II-III quarters. It is reported by the Central Bank. In addition, according to the mega-regulator, financial institutions are willing to make concessions to potential borrowers and to mitigate these requirements. Such measures credit the organization has led a growing competition. However, according to experts, the Russians will become easier. Emptying day by day pockets of our compatriots are forced to economize even on food and now they are not loans.

photo: Gennady Cherkasov

The downward trend in credit rates started in the first quarter of 2016. So, in March the average interest rate on short term ruble loans to individuals amounted to 23.9% APR, midterm — 20%.

However, banks are considering further rate cuts. According to a survey by the Central Bank, go for it ready 56 financial institutions, which account for 85% of the total loan portfolio.

However, they expect increased demand for new loans. However, according to experts, now the citizens are unable to repay even the loans taken earlier. The main reason is the decline in real disposable income.

“According to the National Bureau of credit histories, April 1, debt of citizens increased to 27.13%. These figures clearly reflect the situation of our compatriots, who are mired in debt. The borrowers only getting worse. This question is still important role is played by the reduction in real disposable incomes. Now the chances of Russians to a gradual exit from the “debt bondage” is very limited. Moreover, because of the growing inflation already more than a third of the population spends the bulk of the funds for food and housing. As a result, the “available funds” actually does not remain. It is worth noting also those who fell under the blow of a large-scale optimization of costs of the corporate sector and at all remained without a livelihood, not to mention the repayment of loans. In other words, the situation will only get worse until, until will not resume employment will not begin reducing inflation and increasing real wages. Most likely, the negative dynamics will be observed for at least quarter,” — says “MK” a senior analyst at GK FOREX CLUB Alena Afanasyeva.

Rising prices and a falling ruble. Chronicle of events

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