Duties in Charge of Banks

How frequently and under what circumstances the banks are forgiving the borrowers’ debts?

Александр  Alexander Falev
CEO, ROSGOSSTRAKH BANK
Forgiving the debt –a practice that is not representing the interests of neither the banks nor the borrowers. For banks, this is definitely a loss of profitability, for borrowers - complete loss of business solvency in connection with damaged antecedent for a lifetime. Most Western banks, business models of which are guiding many Russian players, are not lending, for example, to the borrowers whose debt was one way or another ever discharged.

The most effective method in case of problems with the solvency of the borrower is the debt restructuring and active assistance to the borrower, who has fallen in a problem situation.

So, recently our bank significantly upgraded debt restructuring program for the physical entities. In the event of financial difficulties to revise loan terms under the contract can now be carried out according to several pre-designed schemes.

First of all, the customer can contact the bank with a request to extend the granting of a delay in the payment of principal for up to 6 months c simultaneous prolongation of the loan for the duration of favorable conditions. Secondly, there is possibility to increase the maturity of the loan (up to the maximum possible under the current lending program) when interest rates change. Thirdly, the borrower may have reduced amount of penalties, fines forgiven and penalties. And finally, a new kind of restructuring is suspension of accrual of penalties.

The possibility to conduct restructuring is envisaged for all types of loan products.
Елена  Yelena Rechkalova
Bank, Adviser to the Chairman of the Board of Directors
Recently, on the part of customers there has increased the demand for extension of loans, and the banks' marked growth in restructuring - increase in terms of loans, deferred payment while increasing the life of the loan. Also, banks are offering customers the opportunity to select the date of payment, the use of grace period. In other words, lenders provide the flexibility to restructure the debt. In some cases, banks forgive penalties, interest. All this is done to ensure that the client "fitted in the schedule of payments".
Алла  Alla Soldatova
Eastern Express bank, Director for quality and service
So far, this happens quite seldom. Often, in the desperate situations the bank tries to return the loan via court at least in the form of minimum amounts.