Business owners may face growing need for loan restructuring
Between 19 November and 2 December, banks received 4.1 thousand loan agreement change requests from small and medium-sized business owners, which is above the number of requests filed in two preceding weeks (3.6 thousand).
The period saw an almost threefold rise in the number of restructured loans, to 1.2 thousand, in a sign that SME needs for loan restructuring remain current and may well grow in future.
The period also saw banks less frequently declining restructuring requests from individuals. For the first time since late September, when the deadline passed for statutory loan repayment holiday applications, the share of unsatisfied applications receded to total 38.1% vs 43% two weeks prior. The result comes as an outcome of the interaction between the Bank of Russia and lenders with their corporate restructuring programmes.
More details are available in the Bank of Russia information bulletin Dynamics of Household and Corporate Loan Restructuring.