The Central Bank recommends restructuring loans to citizens and SMEs

AK&M 22 October 2021 17:01

The Bank of Russia recommends restructuring loans and loans to citizens and SMEs who applied in November-December 2021. The recommendations are given in connection with the introduction of time limits to combat coronavirus. This is stated in the message of the regulator.

The grounds for changing the terms of contracts from November 1 to December 31, 2021 are the disease of the borrower COVID-19, including family members, or a decrease in the income of citizens and businesses that does not allow servicing the debt.

In these cases, the client should not be charged a penalty (fine, penalty fee) for violating the terms of the contract. In addition, the restructuring should not worsen the credit history. The Central Bank also sent similar recommendations to all credit bureaus.

If a citizen or a small and medium-sized business entity has already taken advantage of the restructuring, this should not be an obstacle to considering a new appeal.

The restructuring is carried out according to the own programs of banks, microfinance organizations and credit cooperatives. Such programs may include deferral of payments, extension of the loan term to reduce monthly payments, and other options to make debt service feasible in new circumstances.