In March, the Russians started taking more cash loans to buy various goods. According to RBC, an increase in the number of such applications was noted by many banks and the National Bureau of Credit Histories.
Loan organizations that responded to a request from journalists have noted an increase in the number of applications for consumer loans by an average of 25% since the beginning of the month. At the same time, the National Bureau of Credit Histories notes an increase in activity in this segment not only from customers, but also from banks that got a chance to earn extra money on the hype.
The main reason for the surge in consumer activity is considered the COVID-19 pandemic and the collapse of the ruble. Imported goods are rapidly becoming more expensive, which causes panic among many Russians and forces them to purchase them, even if it means borrowing money
This situation is not new. A similar thing was already observed at the end of 2014 – the beginning of 2015, when the rapidly rising foreign currency caused a rush of demand for gadgets and household appliances. Now, pretty much the same thing is happening.
Citizens may also rush to apply for loans because of fear of rising interest rates caused by the fall of the ruble. These fears cannot be called groundless. Some Russian banks have already announced an increase in mortgage lending rates, despite the fact that the Central Bank at the last meeting kept the key rate unchanged. It can be expected that in the near future banks will reconsider their positions on other products, forcing borrowers to pay more and longer.
At the moment we are witnessing a classic manifestation of the cult of consumption and profit that prevails in the country. For the sake of clothes and gadgets, Russians are ready to get into loan slavery without thinking about tomorrow, when they might have to give back those things that were purchased during this panic wave. For immediate profit, banks in every possible way encourage such aspirations and thereby inflate the credit bubble even more.
It is a rhetorical question, whether or not the “burst” of this “bubble” will help the already shaking economy.
Such situations, that often remind us of the catch-22, directly stem from the contradictions of the capitalist system, which has long become obsolete. With each new crisis, there are more and more such “cadaverous spots on the body of capitalism”. In the end, this should lead progressive mankind to the adoption of the only true conclusion about the need for a fundamental reorganization of the system and society.