Russians have become overburdened with loans, according to Le Figaro that cites a World Bank research.
Last month, Russian citizens were EUR 210 bio in debt to lending institutions, which is twice as much as in 2013, according to World Bank analysts. The increased credit burden is due to a high interest rate. Microfinancing organizations offer loans for 600% to 700% per year, or 1.5% to 2% per day. As a result, Russians can’t break the vicious cycle and have to take out more loans to repay the existing ones.
In his article, Le Figaro correspondent Pierre Avril writes about Russian woman Marina, 53, who has reached the debt of RUR 1 mio (EUR 13K). She took out the loans from three lending organizations, with 17% to 40% annual interest rates. Even the interest rates (which are typical for ordinary Russian banks and not for microfinancing organizations) are surprising for France where the common interest rate does not exceed 5%. It goes without saying that Marina’s modest doctor salary does not allow her to repay the loans, the journalist notes.