Russia to raise risk premiums on unsecured consumer loans from July
Reuters
Published Apr 26, 2024 12:22
MOSCOW (Reuters) - Russia's central bank on Friday said it would raise risk premiums on unsecured consumer loans from July 1 in an effort to reduce citizens' debt burdens and increase stability in the banking sector should consumer loan losses increase.
"Unsecured consumer lending has sped up," the central bank said in a statement as it held interest rates at 16% on Friday, raising its inflation forecast for 2024 and acknowledging for the first time that it may struggle to reach its 4% target this year.
Consumer loan arrears are growing quickly, the bank said, with the increase in March at 1.8%, compared with a 0.9% increase in February and January.
The bank said it was also setting premiums on car loans.
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Written By: Reuters
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