The Bank of Russia recommended that banks and microfinance organizations carry out restructuring of loans and borrowings to coronavirus-affected citizens and medium- and small-sized businesses through December 31, without imposing fines and penalties
MOSCOW (Pakistan Point News / Sputnik - 10th August, 2020) The Bank of Russia recommended that banks and microfinance organizations carry out restructuring of loans and borrowings to coronavirus-affected citizens and medium- and small-sized businesses through December 31, without imposing fines and penalties.
"In order to provide citizens with the opportunity to restore their financial position, the Bank of Russia recommends that credit institutions and microfinance institutions, until December 31, 2020, continue restructuring loans to citizens who have faced a significant reduction in income and (or) have become ill with coronavirus infection, within the framework of their own programs, without penalties and fines on restructured loans through December 31, 2020," the central bank said.
The Central Bank also recommended that credit institutions restructure loans and borrowings by December 31 via switching a loan from foreign currency to rubles if the borrower applies.
In addition, lenders and credit bureaus were advised not to take into account debt restructuring events related to the spread of coronavirus infection in borrower assessment models, including restructuring under lenders' own programs, which will be carried out in the fourth quarter of 2020.
