Cuban Borrowers Cease Tapping into Loan Facilities
In the Krasnodar region, a whopping 60% drop in consumer loans has been observed, down to 8.8 billion rubles, compared to the same time last year. This stunning decrease is based on data from the National Bureau of Credit Histories, reported by RIA Novosti.
Moscow still takes the lead in loan issuance, with 25.4 billion rubles, while Krasnodar ranks fifth. However, the overall loan volume issued in Russia plummeted by 2.7 times in May 2025 compared to the previous year.
Alexei Volkov, Director of Marketing at the National Bureau of Credit Histories, attributes this drop to a surge in interest rates and stricter macroprudential restrictions.
Earlier reports from "Live Kuban" indicated that the Krasnodar region ranked among the top three regions with the highest bank denials for consumer loans. Interestingly, "Live Kuban" had earlier reported a trend of residents in the Krasnodar region falling behind on mortgage payments.
economic factors are weighing heavily on consumers, with high inflation and rising interest rates making borrowing an expensive proposition. Inflation, particularly in food prices, has squeezed household budgets. Essential costs have surged, with one survey showing 40% of respondents experiencing food price increases of over 30% in 2024 alone[1].
Moreover, Russia is grappling with a labor shortage, estimated at 2 million currently and predicted to double by 2029. Businesses are forced to offer higher wages, which drives up production costs and maintains inflationary pressures that put strain on household budgets[1].
Austerity measures and the ongoing war effort have also played a role. Financing has been redirected towards military spending, limiting consumer financial flexibility and confidence, discouraging borrowing[1].
Russia's national budget has been stretched thin by falling oil prices earlier in 2025, pushing the government to increase its deficit projections. Add economic uncertainty from sanctions and shifting energy market dynamics, and it's no wonder consumers are hesitant to take on new debt[2][3].
Faced with challenging economic conditions, consumers in the Krasnodar region and across Russia are tightening their belts and becoming more cautious about borrowing.
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In light of the economic challenges, the Krasnodar region's residents are becoming more cautious about taking on personal-finance debts. This cautiousness can also be observed in the business sector, as the overall loan volume issued in Russia has significantly decreased due to high inflation, rising interest rates, and stricter regulations.
