Lenders advised to restructure loans for SMEs hit by attacks
The Bank of Russia has advised lenders to restructure loans and microloans for small and medium-sized enterprises affected by terrorist attacks on logistics and commercial facilities. The regulator also recommended waiving late fees and protecting borrowers' credit histories.
Relief beyond statutory holidays
The Bank of Russia issued an information letter recommending that lenders approve loan and microloan restructuring applications for small and medium-sized enterprises (SMEs) impacted by terrorist attacks on warehouses, logistics hubs, production units, office spaces, and trade facilities.
Under the guidance, financial institutions are advised to grant restructurings regardless of whether the affected businesses possess a statutory right to loan repayment holidays.
The regulator urges lenders to treat these restructurings as an independent support mechanism to assist struggling businesses during extraordinary disruptions, ensuring operational continuity for affected commercial entities across affected regions.
Fee waivers and credit history protection
Beyond loan restructuring, the central bank recommended that financial institutions refrain from charging late payment fees, levying penalties, or demanding early repayment of outstanding debts from affected entrepreneurs.
When lenders modify loan terms, they are advised to notify borrowers of updated payment schedules as quickly as possible.
Furthermore, the Bank of Russia emphasized that undertaking loan restructurings under these recommendations must not negatively impact the credit histories of the affected entrepreneurs.
Moral suasion without legal teeth
Voluntary guidance leaves compliance to commercial lenders, offering no binding guarantees for vulnerable businesses.
Without statutory mandates, SMEs face uncertainty over whether banks will grant debt relief or waive penalties.
Moral suasion flags severe risks, yet enforceable legal protections remain necessary.