Arab Today, arab today russias first personal bankruptcy law comes into force
Last Updated : GMT 21:46:51
Arab Today, arab today
Arab Today, arab today

Russia's first personal bankruptcy law comes into force

Arab Today, arab today

Arab Today, arab today Russia's first personal bankruptcy law comes into force

Russian banks encouraged people to take out loans
Moscow - AFP

Russia's first personal bankruptcy law came into force on Thursday in a move expected to usher in a flood of legal action by Russians who are struggling to pay back loans.

Russians with debts of more than 500,000 rubles ($7,680) that are more than 90 days overdue will now be able to declare themselves bankrupt, according to the new law, signed by President Vladimir Putin late last year.  

Russia has previously allowed companies to declare themselves bankrupt but not individuals.

Russian banks encouraged people to take out loans and mortgages during the boom years of high oil prices and many are now struggling to make the repayments, particularly those who took out loans denominated in foreign currency before the ruble plummeted last year on the back of low oil prices and Western sanctions over the Ukraine crisis.

"I receive many such letters [on the issue] and behind each is a personal tragedy," said the deputy president of Russia's central bank, Vasily Pozdyshev, in a statement.

"Experts estimate that some 400,000-500,000 citizens could apply for bankruptcy," Pozdyshev said.

Some experts have questioned how many will actually be able to do so, due to the relatively high cost of the procedure.

Banks however fear that a large number of lenders will use the law to avoid paying back loans, with the number of delayed payments already soaring over the last year.

"The law is entering force at an inconvenient moment," wrote Vedomosti business daily in an editorial.

"Debts on consumer loans today total 6 trillion rubles ($92 billion), while mortgage debts total 3 trillion rubles ($46 billion)."

"Formally, just under 600,000 Russians fall under the terms of the law."

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today russias first personal bankruptcy law comes into force Arab Today, arab today russias first personal bankruptcy law comes into force

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today russias first personal bankruptcy law comes into force Arab Today, arab today russias first personal bankruptcy law comes into force

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday