Nabiullina called for cutting off oxygen to "black creditors"

The head of the Central Bank of Russia, Elvira Nabiullina, said on April 9 during a speech in the State Duma that it was necessary to break the chains of microloans that were driving Russians into a debt spiral.

"We propose three related changes. The principle of "one expensive loan in one hand", a three-day cooling-off period between loans and a reduction in overpayment to 100%. And, of course, in parallel, it is necessary to cut off the oxygen supply to "black creditors," Nabiullina stressed.

She added that these measures will help avoid situations where microfinance organizations give a person a loan to repay a previous loan, and in this case, a debt spiral is formed.

Credit of distrust: young Russians are being cut off from bank loans

Why has it become more difficult for clients under the age of 25 to get loans and what are the risks of them going to MFIs?

On April 8, the head of the Central Bank announced that almost 9 million Russians had used the opportunity to establish a self-ban on lending. She noted that citizens are actively using mechanisms that can protect them from fraudsters.

A service with the ability to prohibit the issuance of loans to oneself has been launched on the Gosuslugi portal since March 1. Those who have submitted such an application have a special mark in their credit history, in the presence of which banks and microfinance organizations must refuse a person in the case of a loan application. At the same time, the self-ban does not apply to mortgages, educational loans, and car loans.