The collapse of the Russian economy, with the failure of the failure to pay the mortgage, and the banks face a “credit crisis” | World news

The largest banks in Russia have witnessed an increase in the failure to pay the mortgage and consumer loans, as it intensifies the economic crisis in the country. Companies and consumers throughout the country were exposed due to a dual uproar of high inflation and interest rates.

Official data shows that inflation continues to stir 10.3 %, despite the concerted efforts by the central bank to reduce the rate. The Russian Central Bank was forced to raise the main interest rate to 21 % – the highest level registered in 20 years. The bank’s board of directors decided to keep the rate at its current level after a meeting on April 25 – despite the appeals of the Kremlin and companies to relax in monetary policy.

Vladimir Putin had previously urged the governor of the Central Bank, Elvira Nabulina, not the “freezing” of the economy.

The punishable interest rate appears to be hitting borrowers and consumers in the mortgage.

In the latest financial reports, the data shows the volume of mortgage loans that show signs of distress in SberBank that rose 90 % between January and March.

The turbulent mortgage share in the bank’s portfolio has doubled to 2.6 %, the highest level since 2022.

During the same quarter, later consumer loans increased by 22.5 % to 610 billion rubles (5.6 billion pounds).

Loans, which were late for more than 90 days, also reached the highest level in three years, increasing from 9.3 % to 10.4 %.

VTB has reported a deterioration in credit quality, although officials did not reveal the exact numbers of different groups of late loans.

The unknown retail loan share increased from 3.9 % to 4.8 % in the first quarter, according to RBC Media estimates.

The Vice Chairman of the VTB First Dmitry Bokrov said that the increase in the lost payment was due to the high interest rates.

“Customers who want to borrow on these high prices are also more likely to miss payments, including a 90 -day threshold.”

Meanwhile, Russian banks are facing a possible credit crisis due to high levels of accumulated debt – many of which were incurred through the preference of the military industrial complex.

Craig Kennedy, a former investment banker, noted: “The Kremlin’s dependence on preferential loans now leads liquidity and a lack of reserve in banks and risks a successive credit crisis.”