Loan repayment holidays: reasons for denial of restructuring to be made clear to borrower

Source: Central Bank of the Russian Federation in English

28 May 2020
News

The Bank of Russia recommends that lenders, when considering applications for loan restructuring under their proprietary programmes, be guided by approaches similar to those laid out in the anti-crisis law (Law No. 106-FZ). Under these, a borrower’s application shall be considered within five days; the restructuring period commences from the date on the borrower’s application date unless the borrower specifies another date; no penalty shall be accrued in the application review period provided that the application for restructuring wins approval.

Also, the regulator’s information letter contains recommendations whereby lenders denying loan repayment holidays or loan restructuring under proprietary programmes should inform borrowers of reasons for such denial.
The Bank of Russia’s information letter was sent to credit institutions, microfinance institutions, consumer credit cooperatives, agricultural consumer credit cooperatives and pawnshops.
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