Restructuring loan payments: regulator recommends
After the introduction of temporary anti-pandemic measures, the Bank of Russia recommends that creditors approve applications of households and SMEs to restructure their loans in November and December 2021. This follows from the regulator's information letter.
The restructuring will be made in line with the programmes offered by banks, microfinance institutions, and credit cooperatives. Such programmes may provide for grace periods, loan rescheduling and other options to make the debt service affordable in difficult times.
From 1 November to 31 December 2021, loan agreements may be amended if a borrower (and/or his/her family members) has COVID-19 or the drop in income of a retail or SME borrower has made it impossible for them to service their debt.
No default interest (charge, penalty) should be accrued in such case. Besides, such restructuring should not affect the borrower’s credit history. The regulator has sent this recommendation to all credit history bureaus.
If a retail or SME borrower had their loan restructured before, this should not prevent a lender from considering a new restructuring application from such customer.