MOSCOW, March 16 Some banks have begun to take into account the likelihood of bankruptcy when assessing the integrity of borrowers. This reduces the possibility of refinancing a loan at a lower interest rate, Associate Professor of the Department of Global Financial Markets and Fintech of the Russian Economic University told in an interview with the Prime agency. G.V. Plekhanova Tatyana Belyanchikova.
This began after the procedure for declaring citizens bankrupt out of court was simplified at the end of last year. Now the total debt must be no less than 25 thousand and no more than 1 million rubles. Banks cannot fail to take this into account in their strategy, otherwise the risk of non-repayments will increase for them.
However, borrowers are deprived of the opportunity to refinance a previously taken out loan. “The loan refinancing market should now narrow. With a high probability of refusals from new lenders, citizens will be afraid of ruining their credit history,” the economist believes.
However, after some time, the simplified bankruptcy procedure will cease to put pressure on the market, because everyone who wants to will go bankrupt, and for the majority of borrowers it is more profitable to repay debt and maintain a good credit history, she concluded.