Borrowers Spending One-Third of Income Servicing Debt
- RIA Novosti
- Jul. 29 2013 00:00
- Last edited 19:44
Russian household borrowers are having to spend about a third of their income on servicing consumer debt, which is a source of concern, a Central Bank official said Friday.
Vladimir Chistyukhin, director of the Central Bank's Financial Stability Department, told the Prime news agency that although the figure was "not catastrophic," the average income of such borrowers was between 20,000 rubles and 40,000 rubles ($600 to $1,200) a month, which leaves them with practically no financial reserve.
"Any change in the structure of their spending or income will create difficulties in servicing debt," he said.
According to an Equifax credit report released in June, the proportion of Russian borrowers with credit histories in more than five financial institutions has grown significantly in the past six years, from 0.1 percent in 2007 to 3.52 percent in May.