Creditors should restructure loans to businesses hit by flood
Creditors are advised to restructure loans issued to businesses affected by the flood and can do this within their own programmes.
This is recommended in the Bank of Russia’s letter sent to banks, microfinance organisations, consumer credit cooperatives, agricultural consumer credit cooperatives, and credit history bureaus.
By restructuring loans, creditors will provide additional aid to businesses in the regions affected by the spring flood in 2024.
If an entrepreneur requests a creditor to change the terms of the loan contract, the creditor is advised to allow the suspension of the fulfilment of the obligations for a period agreed upon with the borrower. After that, the creditor should promptly send a new repayment schedule to the client without charging any fines and penalties.
The Bank of Russia also recommends that such restructuring should not be taken into account for calculating a borrower’s individual credit rating.