The Central Bank of Russia has issued guidance encouraging banks to meet the needs of corporate borrowers facing temporary hardship by restructuring their loans, alongside temporary relief on provisioning requirements for eligible restructured exposures. The easing is available where both the bank and the borrower assess the probability of restoring the borrower’s financial position as significant. Eligible borrowers include companies other than highly leveraged ones, and individual entrepreneurs with a not very high debt service-to-income ratio, provided they have properly serviced their debts over the past six months and submit a realistic business plan for the next three years. Banks are expected to regularly verify actual performance against control metrics and make additional provisions if deviations arise.
Central Bank of Russia 2025-05-26
Central Bank of Russia recommends loan restructurings and temporarily eases provisioning for eligible corporates and entrepreneurs
The Central Bank of Russia has issued guidance for banks to restructure loans for corporate borrowers facing temporary hardship, offering relief on provisioning requirements for eligible restructured exposures. Eligibility requires a significant probability of financial recovery, excluding highly leveraged companies, and mandates a realistic three-year business plan. Banks must regularly verify performance against control metrics and adjust provisions if necessary.