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the Economic crisis caused by the pandemic coronavirus, affected those sectors that are usually in a crisis you feel more or less stable. Problems complain pawnshops and microfinance institutions (MFIs).

this year real incomes of Russians will fall by 6%, said Wednesday the Minister of economic development Maxim Reshetnikov.

Many Russians were left without work and steady income in the background of the measures of self-isolation. In most regions of the country for almost two months closed many types of businesses — non-food stores, beauty salons, fitness clubs and more. Often the employees of the enterprises of these spheres suggests that they are paid a salary not in full or do not pay.

However, in a pandemic to go to the Bank for a loan, to borrow “to pay” or just something to put in a pawn shop was also almost impossible. Banks, microfinance organizations and pawn shops came under strict regulation by the Central Bank of Russia has restricted their work to due quarantine.

Some MFIs, for example, reported a rise in demand for microcredit, but to give them they can’t. Banks also say that their customers are only going to restructure the debt.

during periods of falling incomes Russians often turn to microfinance institutions. It is believed that there obtain a small loan easier, but the interest on the loan is higher.

However, in April the number of issued microloans in Russia fell by 35% compared with March, according to the statistics of the National Bureau of credit histories.

MFI March-may recorded increase in the number of applications for microloans in comparison with previous months and the same months last year, told bi-Bi-si in the self-regulatory organizations “Microfinance and development” (SRO “Mir”). Organization Max.Credit bi-Bi-si also reported an increase in demand for microcredit to the level of 20-30%.

But to meet the growing demand of the MFIs are unable largely due restrictions from the regulator.

Analysts of “Expert RA”, for example, note that due regulation of MFIs are reviewing their strategy: now they give are no longer “payday loans”, and offer more sophisticated services. Many of the smaller MFIs continue to leave the market, experts say.

In the self-regulatory organizations confirm that even in a crisis and pandemic MFIs are forced to deny credit.

According to the companies, specializing in find loans hit and isolation: in such conditions they were forced to suspend the issuance of loans.

In “Expert RA” predicts that in 2020 the demand for microcredit will grow. Analysts attributed this to the fact that people who have lost their jobs, urgently need moneyand current expenses, and many of them the banks refuse the credits. The quality of the borrowers will decline.

Another way to quickly get a kind of loan is the pawn shops. The role of pawnshops especially important in the situation when a small business in Russia has been paralysed and many vulnerable populations, including migrants, are in a “limbo” state and can’t go to banks, says in a conversation with bi-Bi-si Chairman of the Board of the National Association of pawnshops Alexey Lazutin.

“it Turns out that the pawn shops are almost the only financial institution able to meet the demand for small loans for a very significant proportion of citizens and migrants,” said Lazutin.

now, However, pawnshops are also experiencing difficult times: due introduced in the country a regime of self-isolation people often are afraid to visit these organizations, many of which actually had to be closed.

According to the founder and owner of the network of pawnshops “the key to success” Alexander Olejnik, during a pandemic attendance of pawnshops decreased more than twice, and now these indicators have not returned to previous position.

“Some say that pawn it’s gold time, but that’s not true. Gold, which is part of Lombard, it should come out. The situation with selling jewelry is deteriorating — people, unfortunately, impoverished, purchasing power is falling, and sell these products will be more difficult, and therefore negatively affects business,” says Oleynik in an interview with Bi-bi-si.

I agree With him and CEO of the Lombard network “Fianit-Lombard” Stanislav Boronin. He notes that in recent times, an increasing share of unredeemed property, as many clients have lost their income and are unable to return the pledged thing. For these borrowers, the pawnshop has to provide a reprieve for at least three months, following the recommendations of the Central Bank.

From numerous checks and restrictions from the authorities, the owners of pawnshops are often forced to go to the “gray” area and operate under the commissions of stores that can operate without supervision from the Central Bank and other regulators.

However, in the near future, the owners of pawn shops expect growth in the number of clients who are in need of urgent microloans. According to forecasts, Alexey Lazutina, beginning in June 2020, the demand will increase significantly until the end of 2020, the growth can be from 35% to 50%.

In conventional banks, the Russians are in crisis and pandemics are reluctant. The number of all loan applications in the first week of April to the third week of March fell by 49.7%, according to NCB.

On April decline ��of Teresa customers loans bi-Bi-si announced in the five major Russian banks: Sberbank, VTB, “Opening”, ROSBANK and Raiffeisenbank.

to Take a salary: who takes loans at 600% vacation Credit in Russia will give a little and they will spoil credit history is not available help: why Russia may not be getting the support of the authorities?

According to current credit obligations Russians to pay also not in a hurry: more and more borrowers prefer to use credit vacation, is declared by the authorities as one of the measures to support the population.

So, in Sberbank reported that the number of applications for debt restructuring over the last two months has significantly exceeded the volumes of last year. The growth of interest borrowers credit vacation also say in ROSBANK and VTB.

the Head of credit risk retail segment, Raiffeisenbank Alexey Kramarsky explains the situation to the fact that customers have become “more conservative to assess your financial situation and prefer to create a financial safety cushion in the event of unforeseen difficulties.”

According to the Director of the Department of credit business of the Bank “Opening” Michael Kamrava, on average, banks approve three of the four applications for vacation credit retail loans.

For those who still intends to get a Bank loan to do so is becoming increasingly difficult. In crisis conditions, banks have become more meticulous to check the financial condition of its customers and to lend only to the most reliable borrowers.

According to NBCH, at the end of April 2020 banks approve citizens only every fifth application for the loan (20,7%): this figure was the lowest since 2017, when the Bureau started to carry out such calculations.

About tightening the assessment of credit risk customers bi-Bi-si told, for example, in ROSBANK and Bank “Opening”.

Customers of financial institutions against this background, more and more often demonstrate dissatisfaction. As noted in the analytical review of the Bank of Russia “Financial pulse”, the number of citizens ‘ complaints on the activities of banks and MFIs increased by 24.5% over the week from 14 to 20 may. The most pressing problem for disgruntled citizens is just the repayment of loans, including restructuring and refinancing, the document notes.

While the Central Bank does not see in the current credit crisis serious problems for the banking sector. As assured on Tuesday, the Chairman of Bank of Russia Dmitry Tulin, in current conditions, Russian banks can withstand a “shock two times stronger than the shocks of 2008 and 2014”.

“We are confident that a possible withdrawal from the market of several weak banks will not cause the negative systemic consequences,” — said Tulin.