Russia significantly increased the proportion of bad microloans

a Month in the mode of self-isolation because of the pandemic coronavirus infection COVID-19 had a negative impact on the portfolio quality of the Russian microfinance institutions (MFIs).

According to estimates of Bureau of credit stories (BKI) “Equifax,” on may 1, the volume of outstanding microloans increased to 51.3 billion rubles and made up 34.3% of the total portfolio, according to RBC.

Experts of BCI relate to the problem, those micro-loans, payments for which were made more than 90 days (NPL90+). By 1 April this delay accounted for 32.1% of the portfolio, as of March 1, is 30.5%.

the total number of loans overdue above: may 1 amount of such loans made up 4.52 million, or 40,7% of borrowings, compared to 38% on 1 April and 35.9% on March 1.

Commenting on the statistics, the General Director of “Equifax” Oleg Lagutkin said that the growth of NPL up to 40% in April — the highest in recent years, and this is a record since at least December 2016.

the Majority of market players recognise the deterioration of payment discipline of borrowers. Moreover, the growth of delay has affected not only real deterioration in the financial condition of borrowers, but also the growth of negative expectations, said the Deputy Director General for risk management and business analysis IFC “Migkredit” Artem Bykov.

we will Remind, last week the National Bureau of credit histories (NBCH) released data showing that the number of issued microloans in Russia fell in April this year, 35.1% from the previous month. “In April 2020 were issued 1.02 million microcredit or loans to paycheck (up to 30 thousand rubles), which is 35.1% less than was issued in March (1.56 million units)”, — emphasized in the study.

According to marketing Director of nbki Alexey Volkov, this is a “serious decline” and “recovery of the microcredit market will take some time.” “In many respects it will depend on Nascoonly quickly all sectors of the economy will be able to return to normal operation after the cancellation of the most stringent quarantine measures”, — the expert believes.

the Russian economy in February—March 2020 was under the powerful impact of two negative factors — the rapid spread of the pandemic coronavirus infection COVID-19 and its deleterious effect on the global economy and collapse in oil prices. Against this background, the rouble significantly depreciated against the dollar and the Euro. Reacting to the situation, the government and the Bank of Russia adopted several packages of measures to support the economy and citizens.

may 11, Russian President Vladimir Putin announced the end of may 12, a single period of days off, entered March 30, in the fight against COVID-19. He also announced the beginning of implementation of the third package of anti-crisis measures, under which the state, in particular, will increase targeted support for families with children, small businesses, individual entrepreneurs and self-employed. In addition, Putin instructed the government to prepare a national plan for long-term development of the economy, the recovery in employment and incomes.

on 27 may, the Minister of economic development (MED) of the Russian Federation Maxim Reshetnikov said that the total cost of anti-crisis measures to support the Russian economy, aimed at combating the impact of the pandemic coronavirus has reached 3.3 trillion rubles.

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