Over 755,000 household loans restructured by banks in March–September 2022
Over the first seven months of 2022, banks restructured 755,200 household loans worth 358.5 billion rubles and 71,700 loans to small and medium-sized enterprises worth over 1 trillion rubles. By the end of September, the restructured portfolio accounted for 1.3% of banks’ retail loan portfolio and 10.8% of the SME loan portfolio.
Household loans were mainly restructured under banks’ own programmes, and most SME loans were restructured in accordance with the law on loan repayment holidays that was effective in March—September 2022.
Compared to the same period in 2020, when the law on loan repayment holidays and the Bank of Russia’s recommendations to support borrowers were also in effect, the number of applications for restructuring was 1.7 times lower for households and 1.3 times lower for SMEs. This was primarily due to the fact that in 2022, there were no such constraints as the simultaneous suspension of many retail and service outlets at the beginning of the pandemic.
It should be noted that the total volume of restructured SME loans was higher than in March—September 2020, the support was mainly used by small and medium-sized enterprises with larger loans, rather than microbusinesses, applications of which were dominating during the spread of COVID-19.
Over the first seven months of 2022, microfinance organisations granted loan repayment holidays on 11,600 household loans worth 347 million rubles and on 2,500 SME loans worth 3.6 billion rubles.
From 19 February through 30 September 2022, the volume of restructured large corporate loans exceeded 8.4 trillion rubles, or 18.1% of banks’ corporate loan portfolio (excluding SMEs).
For details, see the information bulletin Retail and Corporate Loan Restructuring. It will be posted on a monthly basis.