Financial institutions advised to support borrowers in Belgorod, Bryansk and Kursk Regions
The regulator recommends that creditors proactively communicate with borrowers from the Belgorod, Bryansk and Kursk Regions (who previously were granted repayment holidays or restructured loans) in order to find out whether they need further support. If requested by borrowers, banks are advised to approve their applications and extend the repayment holidays for at least six months.
Creditors should take into account the documents submitted by the borrowers earlier and should not require them again. The regulator reminds the parties that the issue of interest accrual during the payment suspension period established by law is regulated by the loan agreement. In the Bank of Russia’s view, it is a good practice when certain creditors do not charge interest during the restructuring period under their own programmes. According to the Bank of Russia’s information letter, this practice is very valuable due to the high social importance of these measures.