MOSCOW, December 30. /TASS/. The Bank of Russia has extended for six months its recommendations to banks on restructuring of loans disbursed to corporate borrowers and sole entrepreneurs facing temporary difficulties, the regulator’s press service said.
"To support companies confronted by temporary difficulties, the Bank of Russia extended for six months the recommendations to banks to meet the needs of such borrowers," the press service noted.
In order to incentivize the banks to observe such recommendations, the regulator temporarily softened requirements to provisions for restructured loans of borrowers having the potential to restore their financial stability. Such borrowers are categorized as companies with a moderate debt burden, consistently servicing their debts during the last six months and presenting a feasible business plan to the bank, the Central Bank noted.
Banks will be obliged in their turn to regularly check conformity of actual results of the borrower to targets "and additionally create provisions if these are not achieved," the press service added.