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Sunday, April 23, 2017

The state Duma will oblige the Russians to get bogged down in credit bondage


The Russians will limit the maximum size of the debt on the loan. In the state Duma introduced a bill according to which the monetary obligation of a citizen on a single loan must not exceed the initial amount of three times. The authors of the document believe that in this way can reduce the debt load among our countrymen. However, experts are skeptical about the initiative of parliamentarians. According to them, the number of debtors will not decrease because of restrictions on obtaining loans is not installed. In other words, the population will continue to borrow. For them it is the only way to pay back loans taken earlier.


photo: Alexander Astafyev

At the beginning of 2016 38 million people took loans from banks. While arrears reached 2,205 trillion. The first violin in the growth of this trend play a microfinance organization. The value of their loans comes to 500-800 % per annum.

As experts explain, worse to pay off the obligations of citizens forced the crisis. When real disposable income is declining, wages are not indexed, and inflation is rising almost every week, loan payments faded into the background.

According to opinion polls, the population is now saving even on food, not to mention loans.

As a result of growing “bad debt”. However, the deputies do not lose hope to deal with them. So, this time it is proposed to limit the maximum size of the debt in one loan. It should not exceed the initial amount of the loan taken three times.

Parliamentarians expect that the bill will lead to the exclusion of excessive amounts of credit card debt, and also to a more balanced approach when issuing loans.

But, according to experts, the initiative will bring only short-term effect. “Limiting the amount of debt on the consumer credits three times the size (i.e., 200 %) original loan able to stop at a certain level “snowball” growth of the debt. As you know, at high interest, fines, penalties for late payments, it is really a multiple excess of the amount taken. The proposed decision of deputies in many cases it would help people to pay off the loans — says “MK” analyst GK TeleTrade mark in real. But in General, the number of debtors that will not reduce because of restrictions in loan sets. If the borrower knows more than 200% it will not overcharge, he has an incentive not to repay the loan over the years, because then it turns out bet it is quite acceptable. For example, 200 % in 10 years — at the simple rate of 20% per annum. And you can take other loans in other places (if willing, of course). If we accept this practice, then the more correct solution, it would seem the limit is not the maximum amount of debt and the maximum level of interest and penalties. For example, if you use the same numbers — not more than 200 % per annum on the loan and 200% per annum for delay.

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