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Russians Have Enormous Debts to Banks

The overall debt is about $220 billion.

28.May.15 12:13 PM
By Abigail Richards


Russians Have Enormous Debts to Banks
Russians have enormous debts to banks. According to deputy head of Russian Federation Central Bank Vasily Pozdyschev this is due to dynamic crediting during the last few years with tempo over 30% and 40% per year. It led to crisis and arrears to Russian banks. It was also noted that the overall debt is about $220 billion. It includes over $120 billion of consumers credits and $100 billion of mortgage.

At the same time if compared with other countries around the globe it is in less critical position in comparison with Brazil and Kazakhstan, for example. The debt in those countries is much higher in those countries. However, though the situation is not out of control yet, the rate of debts should be decreased in the nearest future to improve the situation.

It was also said that debts to banks are still growing mostly due to the fact that the average income of citizens is decreasing. In 2015 the difference between income and payout of debts was 21% which is rather high. This rate is in risk zone at the moment. For example, on Germany this rate is 1.2% while in Kazakhstan is about 12%.

Some experts and analytics say that this rate can be even higher by the end of the year. This is due to the fact that the income of Russians is still decreasing while spending is becoming higher.

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