Starting April 1, 2024, the credit histories of Russian borrowers will be supplemented with new information on the debt burden indicator (LBR). This is reported by the Bank of Russia. PNI reflects the level of a person’s debt load, when calculating it, only officially confirmed income of a person is taken into account.
By the specified date, the Central Bank will make appropriate amendments to the regulation on the procedure for forming a credit history and oblige banks and microfinance organizations (MFIs) to transfer such information to credit history bureaus. Access to it, except for the subject itself, can be obtained by any credit or microfinance organization with the consent of the client.
We add that the Central Bank of the Russian Federation classifies borrowers with PTI above 80% as over-indebted. These are people who use more than 80% of their official income to service financial obligations. The regulator seeks to reduce the interest of banks and MFIs in working with such clients. So, for this, the Central Bank introduces increased risk ratios for loans approved for this particular category of borrowers, and from January 1, it applies direct quantitative restrictions on such loans.
Source: Rosbalt
Mario Twitchell is an accomplished author and journalist, known for his insightful and thought-provoking writing on a wide range of topics including general and opinion. He currently works as a writer at 247 news agency, where he has established himself as a respected voice in the industry.
