Bank of Russia recommends loan restructuring for fire victims in Siberia
The regulator has issued a letter advising banks and non-bank financial institutions to take into account the circumstances of those borrowers who lost their property due to the fires in the Krasnoyarsk Territory and the Irkutsk, Kemerovo, Kurgan, Novosibirsk and Omsk Regions.
The Bank of Russia recommends that creditors should find acceptable options for debt repayment or even forgive debts on loans and microloans in special cases, as well as not foreclose on collateral. Furthermore, such restructuring should not be considered as a factor worsening a borrower’s credit history.
‘The Bank of Russia has repeatedly issued recommendations in similar cases to support borrowers from affected regions facing difficulties with debt repayment,’ said Mikhail Mamuta, Head of the Service for Consumer Protection and Financial Inclusion of the Bank of Russia. ‘Our experience has shown that creditors do follow our recommendations and make concessions to those who need help due to the consequences of emergencies and natural disasters.’