Self-employed persons and SMEs may apply for loan repayment holidays
If a business or an entrepreneur has more than one outstanding loan, they may be granted six-month repayment holidays for each of the loans once in every five years. The State Duma has approved the relevant law in the second and third readings.
Businesses that raised loans under subsidised lending programmes for small and medium-sized enterprises (SMEs) will also be entitled to loan repayment holidays. If a business needs a break from repayments, it may apply for repayment holidays, regardless of the sector it operates in and whether its earnings have declined or not.
A break will be approved if a loan or a microloan does not exceed the established amounts, specifically ₽60 million for micro businesses, ₽400 million for small businesses, and ₽1 billion for medium-sized businesses. A self-employed person is entitled to repayment holidays if a loan does not exceed ₽10 million. The Russian Government may revise the established limits in the future.
During the period of repayment holidays, interest will be accrued at the rate stipulated by the loan agreement and capitalised on a monthly basis. Furthermore, borrowers may apply for loan repayment holidays under the agreements signed before the adoption of the law but no earlier than 1 March 2024.
The law is to become effective on 1 October 2025. The new law does not prevent banks from restructuring SME loans or providing loan repayment holidays under their in-house programmes.