The Bank of Russia has advised financial institutions to restructure loans for corporate borrowers experiencing temporary difficulties. This recommendation aims to address the needs of companies and individual entrepreneurs who are facing challenges in meeting their financial obligations.
To facilitate this process, the Bank of Russia has temporarily relaxed provisioning requirements for restructured loans. This relaxation is applicable when both the bank and borrower believe there is a significant probability of restoring the borrower’s financial stability.
Eligible borrowers include those with a manageable debt burden who have maintained proper debt servicing over the past six months. Additionally, they must present a realistic business plan covering the next three years. Banks will be responsible for regularly assessing whether borrowers meet control metrics and must make additional provisions if deviations occur.
