FICO and the National Bureau of Credit Histories (NBKI) have released data indicating that Russian borrowers’ credit repayments are at the worst level since 2010.
The FICO Credit Health Index has fallen by 10 points on the scale from October 2010 to January 2013 – six points lower than in January 2012.
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FICO’s index measures the ‘credit health’ of the country. It is based on the percentage of consumer loans and credit cards that are more than 60 days delinquent – in a year this ‘bad rate’ has increased from around seven to eight per cent.
The Dalnevostochnyi region showed the largest fall, of 13 points, in last 12 months. All regions suffered a continued quarter-on-quarter drop, with the exception of Centralnyi, which remained constant compared to last quarter.
Alexander Vikulin, chief executive of NBKI, said the decline in repayments was largely due to large numbers of new borrowers who were not as experienced at managing payments.
He added: "Over the last year, the number of consumers in the NBKI database grew by 28%, to more than 60 million. The fall in the Index is not due to weak risk management on the part of Russian banks, which is generally at a very high level. If you look at the relationship between past-due consumer debt and potentially unrecoverable consumer debt, it has not changed since last quarter."
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