Restructuring supports loans quality amid constraints

The downturn in the retail lending market, caused by the onset of the coronavirus pandemic and the resulting restrictive measures, turned out to be temporary.

Loans quality declined only slightly thanks to the restructurings that supported clients at the time of the most stringent restrictions. The majority of loans that underwent restructuring do not demonstrate an increase in the overdue debt. This might indicate a recovery in the financial standing of a substantial share of borrowers. 

More details are available in the report on the dynamics of the Russian household debt burden in 2020 Q2-Q3 based on the credit history bureaus’ data.