the Russians EN masse stopped paying microloans. This was reported to the credit history Bureau “Equifax”. From the report of the Agency shows that the delay exceeded 40% after a month of isolation and reached a record in recent history levels.
At the end of April, the clients of microfinance institutions (MFIs) overdue more than 90 days payments to 4.5 million loans. The reason is simple — many, occupying a small amount to pay, and could not think that they will lose work and will give nothing. The pandemic provoked an increase in unemployment. According to analysts, the figure could grow with the pre-crisis 4.6% in two or even three times a total debt to creditors to 65 billion rubles.
Microfinance institutions have become breeding grounds for non-payment. At the end of April the MFI clients overdue more than 90 days payment of 4.5 million loans. People take small amounts “to pay” money and do not give, because there is nothing. Or that the salary in crisis, cut, or the person was dismissed. On 27 may, in Russia, officially registered about 1.9 million unemployed. Unofficially, the number of unemployed is 3 times more, according to estimates by the method of the International labour organization.
Besides the obvious reasons for the rising debt – falling economy, unemployment, the head of IAC “Alpari” Natalia Milchakova called “technical factor”: “Many MFI clients borrow cash, but because of the mode of isolation, not all could come personally to the lender’s office to repay the loan. It is also possible that for unscrupulous borrowers, mode-isolation and its associated limitations are just an excuse to not pay debts”.
According to statistics of the Central Bank, half of the borrowers of micro-Finance companies have a debt burden higher than 50% of their monthly income, says the expert of the Academy of management Finance and investments Aleksey Krichevskiy. And for the past two and a half months, the situation has dramatically worsened.
According to analysts, if the number of overdue loans is about one third of the portfolio, which amounts to about 51 billion rubles, by the end of may we can expect it to increase to 40% and 60-65 billion, because another month of isolation people have money, to put it mildly, not increased.
“In fact, this is a common problem borrowers and companies issuing such loans. Almost 40% of their clients are people with debt to 50-75% of your monthly income, — says Krichevsky. — The quality of the portfolio to take care of in advance, then to not ask the state to recognize the industry is seriously affected by the pandemic.”