Loan restructuring applications decline in weeks preceding New Year’s Day
The Bank of Russia reports a decline in the number of applications for loan restructuring both citizens and entrepreneurs filed between 17 and 29 December 2020. The banks’ submitted data show the most significant decline was seen in the last week before the holidays.
The period saw 48.3 thousand contract change requests by individuals, while small and medium-sized enterprises submitted 2.6 thousand requests (60.4 and 3.4 thousand respectively for the two preceding weeks).
The number of applications may rise this January, setting off borrowers’ deferred demand that may have accumulated in the New Year holidays.
Between 20 March and 29 December, individuals filed a total of 3,203.5 thousand applications for restructuring, with 98.7% of submissions considered and roughly 61% approved. That took the number of restructured loans to 1.8 million and the amount of loans to some 860 billion rubles.
The total number of restructured loans for SMEs reached 94.8 thousand, with their share in the total number of approved applications unchanged at 90%. In the 20 March to 29 December period, banks received as many as 171 thousand submissions from small and medium-sized enterprises. The amount of restructured loans totaled 853.5 billion rubles.
More details are available in the Bank of Russia information bulletin Dynamics of Household and Corporate Loan Restructuring.
The information bulletin Dynamics of Household and Corporate Loan Restructuring will be a monthly publication in 2021.