Page 88 - RusRPTFeb23

8.1.2 Loans
Loan debts by Russian citizens totalled RUB27.09 trillion ($400 bn) as of December 1, 2022, having increased by RUB2.04 trillion ($30.3 bn) since the beginning of last year, according to the statistics of the Bank of Russia.
As of December 1, 2021, the loan debts of Russian citizens totalled RUB24.7 trillion ($367 bn). That means that over 12 months, the volume of loans increased by almost 10%.
In November, the Bank of Russia registered a slight recovery in unsecured consumer lending (1%, according to preliminary data in November 2022) after slowing down to 0.3% in October. The regulator attributed this trend to "the implementation of pent-up demand amid some stabilization of the situation."
From January 1, the Bank of Russia introduced quantitative restrictions for banks with a universal license and microfinance organisations on issuing unsecured consumer loans to the population. The regulator attributed the introduction of limits to the fact that a further increase in the debt burden of citizens in the context of economic restructuring could create additional macroeconomic risks.
The problems of citizens with servicing loans and borrowings can lead to a reduction in demand in the economy. At the same time, the losses of banks due to writing off "bad" loans can reduce their ability to lend to the economy, the regulator emphasised.
88 RUSSIA Country Report February 2023 www.intellinews.com