In Russia, the debt burden is growing - overdue microloans and demand for pawnshops are increasing

In the first quarter of 2026, despite a slight reduction in loan issuance volumes, Russia saw growth in the debt portfolio, the share of overdue loans, and the popularity of pawnshops. This was reported by the Foreign Intelligence Service of Ukraine, according to UNN.

Details

According to preliminary information, the figures formally appear "almost favorable." In particular, the volume of issuances decreased by only 3% year-on-year, to $6.3 billion. However, in reality, this moderate decline hides a much more complex picture of the debt burden on the population and small businesses.

"The main reduction occurred in the segment of the most expensive and riskiest products — short-term consumer loans of up to $389 with a term of up to one month. The regulator tightened requirements for assessing borrowers' solvency and limited lending to those already overloaded with debt. At first glance, this looks like a market recovery. In reality, demand has not disappeared; it has simply moved to other, less transparent channels," the post reads.

One such channel has become micro-lending to businesses. According to intelligence data, this segment grew by 22% and reached $519.1 million, with the majority of such loans going to individual entrepreneurs.

"The total micro-loan portfolio, meanwhile, grew to $10.33 billion, i.e., by 16% year-on-year, mainly due to medium- and long-term loans.

But the growth in volumes was accompanied by a significant deterioration in quality: the share of debt overdue by more than 90 days jumped from 27.5% to 33.8% over the year.

At the same time, the market price of problem debts also fell: the discount when selling them to collectors reached 78%, meaning buyers of such portfolios effectively do not believe in the possibility of recovering the majority of these funds," the post emphasizes.

At the same time, the country recorded growth in the pawnshop market. During the quarter, they concluded 4.9 million contracts, and the total pawnshop portfolio increased by 35% to reach $1.5 billion.

The average loan size rose to $358, partly driven by high gold prices, which, according to intelligence data, Russians are increasingly pawning for quick cash.

Recall

The deficit of the Russian budget for the first quarter of 2026 reached 4.576 trillion rubles. Oil and gas revenues fell by 45%, while military spending increased by 17%.