Usurist microlenders under Russia's Rothschild Central Bank charging borrowers 292 per cent per annum
November 15, 2023
The debt of Russians to microcredit organizations increased by 18 percent over the year to a record 350 billion rubles, which is about $4 billion. The number of debtors reached 19.9 million people. Interest rates on such loans reach 292 percent per annum. The Izvestia newspaper writes about this .
The publication refers to data from the largest association of market participants, SRO "MiR". According to the organization, over the year the number of debtors on such loans increased by 2.7 million. By the end of the year, the total debt may increase by another 10 billion rubles.
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Experts explain this by high inflation, which is not keeping pace with the growth of real incomes. The Central Bank is trying to slow it down by increasing the rate at which it lends to commercial banks. The price of their loans is growing, the requirements for borrowers are increasing, and against this background, offers of microfinance loans do not look unprofitable for clients, the material notes.
The debt load indicates a high level of financial tension in Russia, the material notes. Citizens take out loans to maintain their usual standard of living. This is happening even against the backdrop of the Central Bank tightening regulation of market participants. Without it, the growth in the volume of loans issued would have been twice as large, the material says.