The total cost of credit (TCC) under consumer loan and microloan agreements signed or amended in the third quarter of 2024 may not exceed the market averages calculated by the Bank of Russia for respective loan categories by more than one-third. The market averages of the TCC were published on the regulator’s website in May.
The decision not to extend the moratorium, effective since mid-August 2023, has been made because market rates have been sufficiently steady over the previous five months.
Furthermore, the Bank of Russia deems it expedient not to apply measures to credit institutions that have failed to comply with the TCC limit on consumer loans and microloans issued to borrowers with high debt service-to-income ratios.
The Bank of Russia has sent its information letter to notify credit institutions of its approach to comparing loans issued or amended in the third quarter of 2024 with the categories for which the market averages of the TCC were published in May.
When preparing reports for the second quarter of 2024 and onwards, credit institutions should follow the new rules effective since April 1, 2024.
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