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21 Sep, 2022 16:45

Bank of Russia proposes financial support for reservists

People mobilized for military service should be offered payment holidays on loans, the regulator says
Bank of Russia proposes financial support for reservists

The Bank of Russia (CBR) recommended on Wednesday that banks and microfinance providers grant payment holidays on loans to military reservists called up under President Vladimir Putin’s decree on partial mobilization.

According to the regulator, such citizens can apply to their bank or MFO for a pause in payments or a reduction in their size for all types of loans, including mortgages, for the period of mobilization.

In addition, the CBR recommended not to recover from mobilized Russians and their dependents delinquency on loans, and not to evict them from mortgaged housing in the event of foreclosure. At the same time, banks, microfinance providers and credit history bureaus should not consider such restructuring as worsening the borrower's credit rating.

The regulator advised lenders to meet the needs of such borrowers and develop special restructuring programs or adapt the existing ones. Banks should not to charge penalties under the contracts or demand early fulfillment of obligations.

Russian President Vladimir Putin on Wednesday signed a decree for a partial mobilization, which will draw 300,000 military reservists into active service as the country faces a protracted conflict in Ukraine.

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