The Bank of Russia has extended its recommendations for banks to restructure loans for corporate borrowers and individual entrepreneurs facing temporary difficulties. This extension will last for six months and is intended to support businesses during periods of financial strain.
To promote compliance with these recommendations, the central bank has temporarily relaxed requirements for loss provisions on restructured loans, specifically targeting borrowers who are considered likely to recover financially. Eligible borrowers are defined as companies with a moderate debt load that have met their debt obligations over the past six months and have provided realistic business plans covering the next three years. Banks are expected to monitor whether their clients’ actual performance aligns with planned benchmarks and make additional provisions if there are discrepancies.
Additionally, in the first half of 2026, after discussions with banks, the regulator will consider adjusting these benchmarks to reflect industry specifics and company size.
The Bank of Russia, established in 1860 as the State Bank by decree of Emperor Alexander II, serves as the country’s central monetary authority. It is responsible for overseeing financial stability, regulating the banking sector, managing currency issuance, and implementing policies that support economic development throughout Russia. The institution operates through specialized departments under a governor and deputy governors to maintain price stability and foster a competitive financial market (https://www.cbr.ru/eng/). The bank is legally independent from other government bodies and exercises its regulatory functions across the Russian Federation (https://www.cbr.ru/eng/).
