To encourage Russians to join the army on a voluntary basis, Vladimir Putin signed a new legal decree this Saturday, November 23. It makes it possible to cancel the debt of Russians who commit to fighting in Ukraine for a year, up to a maximum of 92,000 euros.
2 mins
With our correspondent in Moscow, Jean-Didier Revoin
From December 1, Russians who enlist for a year will be able to have their debts canceled if a recovery order was issued before this date. These rules also apply to their spouse.
This is the latest incentive put in place by the authorities to attract into the ranks of the army young men aged 20 to 40, who are the most likely to have taken out a loan, for example to buy a home. The total amount of debts covered will be 10 million rubles, approximately 92,000 euros at current rates.
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This measure offers a way for several hundred thousand people to get rid of a debt burden, experts say, because until now the existing provisions for fighters in Ukraine aimed only at suspending reimbursements.
Other participants in military operations in Donbass will also benefit from this cancellation. This is an attractive move given that the interest rate was raised to 21% by the central bank at the end of October.
A similar system in Ukraine
More than 13 million Russians had at least three loans in the first half of the year – a figure up 20% year-on-year, with an average debt of 1.4 million rubles (12,900 euros), according to a report from the Central Bank published last month. Many of them first obtain bank loans and then seek further loans from microfinance organizations.
On the other side, Ukraine also has legislation allowing fighters to obtain preferential terms for loans and, in some cases, cancel their debts.
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