Russians have gone into record-breaking loan debt since beginning of war

https://www.pravda.com.ua/eng/news/2024/09/23/7476355/

13 Comments

  1. Russians spent 33.9% of the credit card available limit in August 2024.

    Source: RBC with reference to information from the Russian credit history bureau Scoring Bureau

    Details: Over a month, the rate of credit expenditure increased by 1.9% and became record-breaking compared with the beginning of 2022, when it was 31.6%.

    Russians have been increasing the proportion of credit card limits used almost non-stop since August 2023. The average bill in the credit card segment reached its maximum in July at US$1,217.

    Oleg Lagutkin, CEO of Scoring Bureau, states that Russians’ credit card spending has increased due to the rise in consumer prices.

    In August 2.05 million new credit cards worth US$2.5 billion were approved for Russians. Compared with the previous month, the issuing of new credit cards dropped by 3.7% in quantitative and by 4.7% in monetary terms.

  2. The Russian state is also borrowing money at ~18%, so they’re basically putting their war funding on a credit card too.

    And despite the *massive* increases in money being paid to Russian soldiers and workers, it looks like the inflationary spiral is eating all of that buying power and more, so that Russians on average are still having to go into debt to afford day to day spending.

    Sanctions… slow but deadly.

  3. 1335JackOfAllTrades on

    Aren’t people in every country going into record breaking debt?

    Americans have lots of credit card debt and we aren’t under any sanctions.

    I’m not sure how one can separate the effects of just the cost of living going up in an inflationary world from the sanctions in Russia.

  4. Average intelligence human here: can Russia just keep taking out loans? Like will they reach a number where no one gives them money anymore or what? What’s the point if they can just keep taking out loans? Does it negatively effect their credit score?

  5. Naive_Reality_1239 on

    This is bizzare. Couple of years ago (before the war) I argued with a pro-russian friend of mine affected by their propaganda and his beliefs of how great Putin was for Russia. One thing that he insisted on is how much debt they’ve paid off becauae of Putin’s “brilliant” policies.

    What do you have to say for yourself now, Steven?

  6. Certainly a bad sign for Poots. Let’s see again, how it’s all “the West’s” fault and none of his.