Instruments for limiting households indebtedness

Such instruments include:

  1. Debt-Service-to-Income (DSTI) Ratio is the percentage ratio of the size of the monthly payment for credit transactions (payments under credit agreements, loan agreements with microfinance organizations, factoring agreements, leasing, etc.) to the amount of the borrower’s monthly average income. DSTI is calculated when providing a consumer loan. This indicator should not exceed 40%. In case of exceeding the established value, the debt on such loans should be no more than 10% of the total amount of debt owed to the bank under consumer loans.

  2. Loan-to-Value (LTV) Ratio is a percentage ratio of the loan amount to the cost of the property accepted as a collateral and/or to the amount of other security in accordance with the agreement. LTV is calculated when granting a loan to finance real estate. This indicator should not exceed 90%. In case if LTV is between 90% and 100%, the debt on such credits (excluding debt under credits issued using government support) should be no more than 10% of the total amount of debt owed to the bank under credits for financing real estate.

The use of both instruments is regulated by the Instructions on the Procedures for Granting Funds in the Form of a Credit and the Return (Repayment) Thereof.