Bad omens

[e_mir]

For me, the main sign of the catastrophe of the Ukrainian economy isn’t credit rating or the unstable hryvnia. No, for me It’s numbers of small non-bank offices that provide quick loans (and pawnshops) which appeared and thrived here in a past five years. 

This is quite dangerous sign because:

1. A lots of people can’t use credit card either of bad credit history or just because of low and unstable income. Usually non-bank offices offer less money, but mostly without checking of  your credit history (and with breathtakingly high credit interest, of course).
2. Bank system isn’t trusted by many of my fellow citizens.
3. Ukrainian businessmen are afraid to start new businesses with a longer period of return on investment. Loan office is much simpler and “shorter” business.
4. Loan/pawnshop office’s operations are often very close to illegal and criminal activity. They haven’t got even minimum level of financial security and many and many of them use investments of criminals or/and corrupted officials.