Russian President Putin Signs Vacation Credit Law

Borrowers must make payments on loans on time, without waiting for the end of the day off,  message published on the website of the Central Bank.

In this case, creditors are advised to consider whether debtors have the opportunity to visit the bank’s office or make a payment through remote channels. On the eve of President Vladimir Putin signed a law on credit holidays. In accordance with it, borrowers who took a loan before the entry into force of the document will be able to apply for vacation for up to six months, if their income for the previous month decreased by 30 percent or more compared to the average monthly income for the past year.
During these holidays, fines and penalties should not be charged, early payments cannot be requested, foreclosure on the subject of a mortgage is not allowed, treatment with a claim to the guarantor.

The Central Bank recommended to credit organizations themselves to continue working, limiting themselves to a minimum of employees who would provide customer service in duty offices and support for online services.
The day off schedule introduced in Russia due to the coronavirus pandemic has been extended until April 30. But some enterprises and organizations, including financial ones, will continue to work.

The announced extension of the holiday regime due to the threat of the spread of coronavirus infection does not apply to organizations that provide financial services, in particular, settlement and payment services, and does not exempt their borrowers from loan payments. This was reported on the website of the Central Bank of Russia.

“The Bank of Russia proceeds from the fact that obligations on financial transactions, the deadline for which is non-working days, must be fulfilled by debtors within the period stipulated by the agreement,” the statement said.

It is noted that in order to provide continuous access to banks and other organizations, it is necessary to provide the ability to provide services through digital services and online channels. And if it is impossible to provide “critical” financial services by the above methods, ensure that they are performed offline taking into account the requirements to prevent the spread of coronavirus infection.

Along with this, the regulator also recommended that financial institutions reduce to the necessary minimum the presence in the offices of employees who are not directly involved in customer service, in particular IT departments, accounting and other departments.


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