The Central Bank of Russia announced a revised, more risk-sensitive approach to how banks create provisions for loans financing the construction of apartment buildings. The methodology will apply to loans issued at any stage of a project, from acquiring land rights and securing development parameters through to sales of completed apartments. Under the new framework, risk assessment will reflect the project life cycle and focus on adherence to deadlines for approving urban planning and project documentation, construction, sales, and debt repayment. Banks will also consider instalment plans offered by developers to shared construction participants as part of the overall credit risk assessment. The updated approach is scheduled to take effect on 1 October 2027 and will be mandatory for tranches issued to projects where construction has not yet started and for loans issued after the ordinance enters into force.
Central Bank of Russia 2026-04-27
Central Bank of Russia to introduce risk-sensitive provisioning for apartment construction project loans from 1 October 2027
The Central Bank of Russia announced a revised, more risk-sensitive methodology for banks’ provisioning on loans financing apartment building construction, covering all project stages from land acquisition to sales of completed units. The new framework links risk assessment to the project life cycle, including adherence to key deadlines and developers’ instalment plans to shared construction participants, and will be mandatory for projects where construction has not yet started and for loans issued after the ordinance enters into force.