The Bank of Russia Has Extended the Recommendation for Banks to Restructure Loans and Borrowings until April 1
OREANDA-NEWS. As follows from the regulator's message, the Bank of Russia has extended until April 1 the recommendation for banks to restructure loans and borrowings to individuals without penalties and fines.
This decision was caused by the pandemic and the restrictions imposed in the regions. Many people continue to lose income, have lost their jobs, or cannot find a new one. The restructuring of loans and borrowings has been extended for the second time. Previously, the restructuring recommendation was valid from August to December 2020.
The Bank of Russia, in exchange for restructuring, will allow postponing the creation of provisions for possible losses on such loans until July 1, 2021.
As the National Association of Professional Collection Agencies predicts, if state support for the restructuring of loans and borrowings continues, the number of overdue debtors in the Russian Federation will not exceed 5.7 million. For comparison, in May there were 5.2 million such debtors.
Banks' capital stock and profits allow them to provide support to citizens and businesses through loan restructuring and continue lending to the economy. By December 2, 2020, more than 6.5 trillion rubles of debt on loans from households, entrepreneurs and companies were restructured.