hit tracker
Thursday, February 2, 2023
HomeLatest NewsConsumer loans will be issued with restrictions KXan 36 Daily News

Consumer loans will be issued with restrictions KXan 36 Daily News

Date: February 2, 2023 Time: 13:50:31

Restrictions on the issuance of consumer credits

Since January 1 and throughout the first quarter of 2023, the Bank of Russia has established restrictions for universally licensed banks and microfinance organizations (MFOs) on the issuance of loans and consumer loans. It is assumed that because of this, banks will be less tempted to lend to borrowers with a high debt load and artificially lengthen loan terms.

In the case of banks, the volume of unsecured consumer loans issued during this period to accredited borrowers may not exceed 25% of the volume of all consumer loans issued by the bank in January-March 2023. The limit of the participation of consumer loans with a term greater than five years for the first quarter of the following year is 10%. MFOs will not be able to issue heavily indebted borrowers in the first quarter more than 35% of all loans.

The difference in the restrictions for banks and MFOs is due to differences in the risk profiles of borrowers (MFO clients are characterized by a relatively high level of risk). Since the restrictions are introduced simultaneously for banks and MFOs, a significant flow of clients from banks to MFOs is not expected, according to the Central Bank.

Initially, the Central Bank planned to set limits from July 2022, but postponed the decision due to economic sanctions. The Central Bank plans to set limits for the second quarter of 2023 in February “taking into account the dynamics of the population’s debt burden and credit standards.” The Bank of Russia now does not rule out that the limits can be tightened.

There will be a single tax payment

As of January 1, the Single Tax Payment (STP) will be mandatory for all taxpayers.

If now taxes are paid separately for each of its types, with the preparation of documents also separately for each payment, then from 2023 taxes and contributions will have to be paid in a single payment order. With the introduction of the UNTS, there will be no situations where there is an overpayment on one tax and there is a debt on another.

The money transferred will be credited to the Single Tax Account (UST) of each payer. “These amounts will then be distributed by the tax service itself in accordance with its purpose, based on the accrual data of the payer: first, the debt will be closed, starting with the tax with the previous payment term, then the accruals with the term current payment, the last – fines, interest and penalties. If the payment terms coincide, then the UTP will be distributed in proportion to the amounts of the obligations, “the Federal Tax Service (FTS) said in a statement.

For legal entities and entrepreneurs, the UNS has its own characteristics: a single term for payment of taxes – no later than the 28th day and the provision of the main types of tax declaration no later than the 25th day after the end of the corresponding tax period.

The change is relevant mainly for companies: natural persons can pay taxes in a single payment since 2019.

Buying “unfriendly” stocks will become inaccessible to inexperienced investors

Starting January 1, brokers will have to suspend the execution of any instruction from an unqualified investor to increase their position in securities of foreign issuers from hostile countries.

This is the final stage of the Bank of Russia’s restrictions on inexperienced investors regarding the purchase of “unfriendly” stocks and bonds. Before that, from October 1, the maximum share of securities of issuers from hostile countries in the portfolio of “Nequal” could be 15%, from November 1 to 10%, from December 1 to 5%.

“This decision is intended to minimize infrastructure risks for unqualified investors, as foreign financial institutions registering such securities may block the ability to dispose of the acquired assets without prior notice. More than 5 million investors have already suffered from such a block. It is very difficult to protect the rights of the owners of these securities after the fact, since the solution to the problem lies outside of Russian jurisdiction,” the Bank of Russia previously explained.

As of January 1, taxes for oil and gas companies increase

Starting in early 2023, taxes for oil, gas, and coal companies will increase.

Additional budget revenues are planned to be used to finance the social sphere: medical care, education, pensions, as well as to reduce the effect of Western sanctions on the Russian economy.

In total, from increased taxes on oil and gas companies and savings on payments, the treasury will receive an additional 1.08 trillion rubles in 2023, 1.13 trillion in 2024 and 1.19 in 2025. The budget plans to receive another 30 billion rubles from the mineral extraction tax increase on coal in the first three months of next year. On top of this, the increase in the tax on mineral extraction in the oil industry should bring 105 billion rubles to state extra-budgetary funds in 2023, 114 billion in 2024 and almost 123 billion in 2025.

Hansen Taylor
Hansen Taylor
Hansen Taylor is a full-time editor for ePrimefeed covering sports and movie news.

Most Popular

Recent Comments