Central Bank recommended that Russian banks give credit holidays to mobilized

The Bank of Russia recommended that banks and microfinance organizations give credit holidays to mobilized citizens.

“Citizens mobilized by the presidential decree can apply to their bank or microfinance organization for a deferral of payments or a reduction in their size for all types of loans, including mortgages, and loans for the period of mobilization,” the regulator said in a statement.

The Central Bank recommended that lenders meet the needs of such borrowers and develop special programs for loan holidays and restructuring or adapting existing ones. It is also recommended not to accrue forfeits (fines and penalties) under contracts, not to demand early fulfillment of obligations, to suspend the collection of overdue debts or mortgage housing, and not to evict from mortgage housing that was previously foreclosed.