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Russia to raise risk premiums on unsecured consumer loans from July

Published 26/04/2024, 12:22
© Reuters. A Russian state flag flies over the Central Bank headquarters in Moscow, Russia, August 15, 2023. A sign reads: "Bank of Russia". REUTERS/Shamil Zhumatov/ File photo

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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