Russia: Consumer Debt Grows Persistently

BusinessEconomy ♦ Published: August 2, 2013; 06:59 ♦ (Vindobona)

Russia´s Central Bank wants to stop the increasing debt servicing costs for Russian households.

Russia: Consumer Debt Grows Persistently / Picture: © Vindobona.org

About a third of the income of Russian households is spent on debt servicing costs. As a result, Russian consumers usually have no financial reserves. According to the Central Bank, changes in the income or spending would cause problems in debt servicing. As a result, the Russian banking sector may observe a growing share of non-performing loans in the future. Moreover, domestic demand…