Russia: Is Over-indebtedness Looming? ”The rapid development of the retail lending market in Russia has created a group of borrowers who actively increase their liabilities without proper assessment of their ability to discharge them,” said Alexander Vikulin, CEO of NBKI.
FICO (NYSE:FICO) and the National Bureau of Credit Histories (NBKI) announced that Russian borrowers’ credit repayment delinquencies rose in July 2013, continuing the climb that started in early 2012. The country’s FICO® Credit Health Index is now at 104 points, the lowest level since January 2010.
The FICO Credit Health Index measures Russia’s overall credit health, based on the percentage of consumer loans and credit cards reported to NBKI that are delinquent by more than 60 days. In July, 9.81 percent of Russian credit accounts were delinquent, compared with 7.05 percent in January 2012 and 7.75 percent in July 2012. All regions within Russia had lower FICO Credit Health Index scores than last quarter, and lower than in January 2013. The Severo-Kavkazskii region has shown the largest decline (nine points) in borrowers’ credit performance this year, while the smallest decline (four points) occurred in the Privoljskii and Uralskii regions. Centralnyi had the highest Credit Health Index, at 108.
Source: FICO Press Release
