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Russians massively default on loans

There are 12 mio borrowers in Russia whose loans are more than 3 months overdue, financial ombudsman Pavel Medvedev said at a news conference at Rossiya Segodnya press center on Monday, July 8.

Debts that are over three months overdue are considered hopeless by the Central Bank, he said. As many as 12 mio Russians currently have such debts borrowed either from banks or from microfinance institutions; 750K-800K debtors owe more than RUR 500K ($7,840); the others have borrowed smaller amounts, Pavel Medvedev added.

According to the expert, Russia still has a large number of individuals who are bankrupt – 100K people.

“Two thirds are sole business owners or individuals whose creditors filed for their bankruptcy. The rest are people who have filed bankruptcy themselves,” he added.

Earlier, the Center for Macroeconomic Analysis and Short-Term Forecasting reported an increase in the number of bankrupt companies in Russia in the first quarter of 2019: compared with the pre-crisis level, the number of bankruptcies is 9.9% above the first quarter of 2014.

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