In order to reduce the risks that are associated with the supervision of citizens, the Central Bank introduced an additional debt rate (PDN) to regulate and set the risk rate depending on the level of PDN and PSK.
Debt Load Indicator (PDN)
Full loan cost (PSK)
Over the past year, the debt of the population has grown. In connection with all the well-known restrictions, which began from March 2020, a significant part of the citizens remained without work and, accordingly, a source of income. Citizens fell under reduction or were at home with minimal payments from the employer. All these factors provoked people to take loans, which in the future they had no opportunity to pay and to repay the previous debtors made a new loan.
The program Introduced by the state is concerned about the central bank, since the population takes loans for large amounts with a small contribution and under a low percentage of 6.5% per year, and the actual income of citizens fall at the moment. The Central Bank is needed by a mechanism that would allow to introduce quantitative restrictions on ultra-high-consuming loan agreements.
At the moment, it is not for example, as a restrictive mechanism will work, but the Central Bank plans to develop it in the next two years. From the words of the Central Bank of the Central Bank, it is clear only that restrictions will be interrelated with capital credit institutions, or rather with increasing requirements for them. All this can lead to the fact that banks will be risky and disadvantageously issuing money on credit to unreliable borrowers.
Increased requirements will contribute to a decrease in the incentive of banks to expanding the issuance of consumer loans to customers with high PD.