Number of applications for restructuring of household and corporate loans keeps steadily declining
Small- and medium-sized businesses are less and less frequently applying to banks for restructuring, and this trend has continued over the past few weeks, according to the latest issue of the ‘Restructuring loans to individuals and companies’ information bulletin. From 13 to 26 August, the number of applications was less than 0.5 thousand compared to 1.6 thousand over the previous two weeks. The aggregate number of SME loans restructured from 20 March to 26 August exceeded 88 thousand, and their share in the overall number of approved applications reached 89.5%.
The number of applications for restructuring submitted by individuals over the two weeks from 13 to 26 August was approximately 67 thousand (7 thousand less than two weeks ago). However, in the second half of August one of the major banks changed its application accounting methodology and adjusted its figures. As a result, the aggregate number of applications increased by an additional 51 thousand.1 This adjustment is technical.
Overall, from 20 March to 26 August, banks received 2.7 million applications from their borrowers to change loan agreement terms and conditions, of which 1.6 million requests for the total amount of 734 billion rubles were approved.
1 One of the major banks used to exclude applications of borrowers who fulfilled their obligations later, after restructuring, from its statistics. However, as the loans had been restructured, the bank added these cases to its statistics for the sake of more correct accounting.
