Today, the Russian economy is at the stage of integration into the global economic system. This explains the need for domestic companies to raise funds in foreign currency. Getting loans from foreign organizations is one way to solve this problem.
Who is a borrower?
The borrower is a party to credit relations, which received a loan and assumed the obligation to repay it on time and pay interest for the period of use of the loan.
In the framework of credit relations, the same economic entity can act both as a creditor and a borrower. If a company receives a loan from a bank, it will be the borrower, and the other party will be the lender. But if the organization stores its funds in the bank, they will act in opposite roles.
With a loan, this economic entity will be a party in relations with the creditor. He takes a certain amount of money or other items with a specific affiliation. In accordance with the contract, the borrower must return the same amount of money or an equal number of things of the same kind and quality.
If the object of the loan will be funds expressed in monetary units of another state, the economic entity will be a foreign currency borrower.
For what purposes do currency borrowers raise funds?
The goal of attracting foreign currency can be any. However, it is worth highlighting the most common of them:
- payment for services, works or intellectual property acquired from foreign or domestic companies;
- payment for goods that can also be purchased under international leasing contracts;
- when opening representative offices of a company abroad;
- the acquisition of securities that are denominated in the currency of another state;
- purchase of real estate using foreign currency;
- participation in investment activities of a foreign company;
- for other purposes.
It is worth noting that in Russia, obtaining loans in foreign currencies from domestic companies is prohibited by law. Services to foreign currency borrowers are provided by authorized financial institutions. As a rule, they charge higher interest rates than ordinary banks.
What costs do the foreign currency borrower expect?
Using loans leads to additional costs that you should be aware of before resorting to this method of obtaining funds. Illiteracy in this matter can lead to negative consequences. Foreign borrowers will have the following costs:
- interest paid on loans to lenders;
- the difference in the exchange rate formed under the terms of the agreement from the moment interest is accrued until it is fully paid off.
Interest on the loan must be paid in accordance with the procedure provided for in the contract. If the relevant terms are not indicated in it, they must be paid in until the full return on a monthly basis. When recalculating the accrued interest, the unrealized expense or income will be the amount of the negative or positive exchange rate difference.
Mortgage credit lending
Considering this situation, it is worth highlighting mortgage lending. This is a long-term loan provided by a financial institution to an individual or legal entity. In this case, the object of the pledge is necessarily real estate. This can be premises, structures, as well as residential and industrial buildings. It is worth noting that foreign currency mortgage borrowers are persons who have been granted a loan in foreign currency.
The most common application for mortgage lending in Russia is the acquisition by citizens of real estate on credit. Basically, the purchased property is the object of the pledge, however, it may be already having buildings. Real estate provided on a mortgage is registered with the relevant authorities, therefore, foreign currency borrowers on a mortgage will not be able to sell it before repaying the loan without performing special actions.
Foreign currency mortgage loans
In the current economic situation of the state, it was the owners of mortgage loans in foreign currency that faced the most difficult situation. This is due to the fact that most of these citizens receive income in rubles, and the cost of monthly payments in dollars or euros has risen almost several times, which put a large number of families on the brink of default. The following solutions to the problem are discussed:
- fixing a certain exchange rate;
- introduction of a moratorium on collecting overdue debts;
- revision of the interest rate on the loan.
It is worth noting that a final decision has not been made, so foreign currency borrowers on a mortgage are seeking serious action on the part of the state. Monthly loan debtors are becoming more and more, as citizens are not able to make payments on time in large amounts. Among them may be half of the borrowers who borrowed funds in foreign currency. The government should take adequate measures in relation to citizens of this category, as the State Duma is preparing to freeze payments. At the same time, the Central Bank offered to help foreign currency borrowers by transferring loans in monetary units of other countries to rubles, focusing on a specific rate. However, experts argue that the consequences will have to cope with the citizens themselves, who took a loan without weighing all the pros and cons.
The movement of foreign currency mortgage borrowers
At the end of last year, an all-Russian movement of foreign currency mortgage borrowers was formed. This was due to a sharp devaluation of the ruble, which made it virtually impossible to service loans of this type. This movement has a single purpose, which is to transfer the loan balance on terms acceptable to citizens, which equalize payments in currency and rubles as much as possible.
The all-Russian movement of foreign currency borrowers includes participants, which are citizens of the state who have issued bad loans at different times. They are presented in various social networks and have their own website. The participants in the movement in question perform certain tasks as far as possible. They are:
- participation in various conferences;
- organization of events;
- negotiating with government representatives and financial institutions;
- work with the media.
The all-Russian movement of foreign currency mortgage borrowers involves participation on a voluntary basis. Each of the participants has the right to express their opinion, as well as make constructive proposals that are based on competent argumentation.
How does a society of foreign currency borrowers relate to power?
The society in question emphasizes the lack of political goals, which leaves a loyalty to the government as a priority. The all-Russian movement of foreign currency borrowers also abides by consistent appeal to commercial banks. This allows you to achieve the optimal solution to the problem with a mortgage in a foreign currency.
In dealing with the media, the movement of foreign currency borrowers does not comment on the opinion of the country's foreign policy. In the press there are references to society in the context of state policy, however, they are mainly a provocation. Quite often, various movements are trying to make borrowers their allies as a result of an unstable economic situation.
It is worth noting that the movement of foreign currency borrowers prohibits illegal actions to its participants. Otherwise, they will be held personally liable for violation of this requirement. For this reason, they will not receive public assistance.
The commercial benefit of society
In the process of existence, foreign currency mortgage borrowers do not derive commercial benefits. Participants, by their own selfless desire, strive to set real tasks for solving the existing problem. Violation of traffic rules is the commercialization of activities in any form.
Solution
A large number of citizens who find themselves in a difficult situation are seeking from the government and commercial banks to provide more suitable conditions for repaying loans. Foreign currency borrowers also want mortgage loans not to be issued in foreign currency at this time. The Central Bank also insists on this, but banks continue to provide this service. This is due to the fact that institutions are also facing a crisis and want to get as much profit as possible. Citizens can independently determine how risky it is. At the moment, foreign currency borrowers are hoping for a favorable development of the situation. The number of citizens who take loans in foreign currency has significantly decreased. This is confirmed by the fact that borrowers weigh the pros and cons, making the right choice.