Three categories of credit defaults according to MEDT

    The Ministry of Economic Development has developed a mechanism to protect the domestic financial market from mass refusals from payments on consumer loans. The Ministry wants to divide the debtors into three groups and provide parts of them with the right to judicial protection from creditors.

    Sergei Tsygankov, head of the corporate legislation department of the Ministry of Economic Development and Trade of the Ministry of Economic Development and Trade, told RBC daily that the ministry is developing a bill in accordance with which it is proposed to divide debtor citizens into three groups depending on their level of well-being. In the first group there will be those debtors who cannot even cover the costs of conducting the bankruptcy procedure itself (according to preliminary estimates by the ministry, the cost of such a procedure is 100 thousand rubles). The Ministry of Economic Development and Trade proposes to call such debtors malicious bankrupt, since on their part there is an actual presumption of guilt in committing an offense, that is, a person took a loan, knowing full well that he would never return it.

    Malicious bankrupt will be deprived of the right to exemption from debts, their property will be sold. At the same time, the Ministry of Economic Development and Trade considers it necessary to allow the sale of a single bankrupt housing: the debtor’s apartment can be sold or exchanged for housing of lower value if, for example, each member of his family has more than eighteen square meters of total area. The current law prohibits doing this.

    The second group includes debtors who have 100 thousand rubles. for bankruptcy proceedings. Bankruptcy proceedings will be applied to these citizens, that is, the sale of property and the distribution of funds received between creditors. However, in this case, the law will not allow lenders to foreclose on the apartment in which the debtor and family members live, regardless of its size. In addition, some other types of property, such as household appliances, will not be subject to sale.

    According to Sergei Tsygankov, other restrictions on the sale of property of the debtor are now being discussed. After the completion of the bankruptcy proceedings, the borrower's debts to the bank will be deemed repaid, even if the proceeds from the sale of the property are not enough to fully repay the debt. “In this case, we consciously stand up for the interests of the debtor, believing that maintaining an active economic agent is more favorable than propagating poverty,” said Sergei Tsygankov.

    The last group is proposed to include debtors, whose income will allow them to pay all debts within five years. The collection of property of such borrowers will not be made.

    At the same time, the debt protection mechanism will be extended to debtors who fall into the second and third groups: they will be able to declare bankruptcy in court. From the moment the court decision comes into force, the creditor will cease to charge interest and penalties on arrears. Debtors of the first group will be deprived of the right to apply to the court with a statement on judicial protection from the creditor.

    “The mechanism of judicial protection of debtor-consumers can actively earn within two to three years after the adoption of the law,” added Sergey Tsygankov.

    According to the head of the analytical department of Promsvyazbank, Maria Subbotina, the adoption of a new law on bankruptcy of citizens is a progressive step, but it will not become a panacea for all ills. “We must also take into account the peculiarities of the Russian legal proceedings, which in the end will not allow us to fully launch the mechanism for protecting the debtor from the creditor,” explained Maria Subbotina. “At the same time, the very fact of bankruptcy will force citizens to take a more careful approach to thinking through their family budget.”

    Sergei Tsygankov emphasizes that the work on the bill on private bankruptcies “has nothing to do with expecting a crisis” in the Russian consumer lending market.

    Executive Director of MDM Bank Alex Kantarovich believes that the danger of such a crisis is real and that it could very well happen in the medium term. “For the first time in several years, the ratio of defaults to total consumer loans has become quite tangible,” he said. - This is not so noticeable in large banks, but it is already clearly visible in banks included in the second tier.

    Troika Dialog’s chief economist, Evgeny Gavrilenkov, is confident that the adoption of the law on bankruptcy of citizens will certainly become a stabilizing factor for the country's financial market.

    According to the Central Bank, on December 1, 2006, banks provided loans to citizens in the amount of 1955 billion rubles, and the amount of overdue debt amounted to only 53.6 billion rubles, that is, only 2.7%. The worst ratio of overdue debt to the volume of loans issued to the population, 4.2%, is observed among banks, which rank from 6th to 20th place in terms of assets. Moreover, the total equity capital of all credit organizations as of December 1, 2006 amounted to 1571.3 billion rubles.

    Author: Igor PYLAYEV

    Source: KlubIB

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