The Bank of Russia has advised credit institutions to lend support to individuals experiencing issues in individual housing construction. This recommendation targets situations where a household has secured a mortgage loan for a construction project, and the bank has transferred the funds to a contractor who then fails to complete or begin the construction.
Financial institutions are encouraged to assess each scenario individually, considering the borrower’s economic circumstances, social status, and whether other housing is available or not. Based on this assessment, banks might choose to restructure the debt. This restructuring could involve not increasing the interest rate due to incomplete construction, deferring the repayment date, refraining from applying fines, and in some cases, writing off the debt either fully or partially.
