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Sberbank Of Russia Has Received Applications For A Restructuring Of Loans By 460 Billion Rubles

Sberbank Of Russia Has Received Applications For A Restructuring Of Loans By 460 Billion Rubles

Sberbank of Russia, from the end of March to the middle of July, received applications from almost 500 thousand individuals to restructure loans for 460 billion rubles, the Bank said in a press release.

"At the same time, the applications themselves were almost 750 thousand, which means that several clients have several loans at the same time, for example, mortgage and consumer loans. These figures include both Sberbank's program and the state program of credit holidays, which is also in high demand among our clients, and the approval level for it is 92%," said Maxim Degtyarev, Vice President and Director of the Department for dealing with problem assets of Sberbank, quoted in a press release.

Sberbank notes that under the state program "credit holidays" under the 106-FZ, customers must provide all the necessary documents within 90 days after the restructuring is completed. The law provides for the provision of documents confirming the decrease in income. "If the client does not have such documents for some reason, Sberbank can offer them to switch to their credit vacation program," Degtyarev said.

In total, during the crisis period from the end of March to the middle of July 2020, almost 500 thousand customers turned to Sberbank for restructuring of consumer and mortgage loans, as well as credit card debt. The main reason for requests is a decrease in income due to coronavirus and related restrictions.

Maxim Degtyarev, Vice President of Sberbank, Director of the Department for dealing with distressed assets:

"For objective reasons, some of our clients have found themselves in a difficult life situation in recent months. And our main task is to help such clients from the very beginning of their financial difficulties. In total, during the pandemic, half a million Russian residents applied to us for restructuring with a total amount of about 460 billion rubles. At the same time, there were almost 750,000 applications, which means that several clients have several loans at the same time, such as mortgage and consumer loans. These figures include both Sberbank's program and the state program of credit holidays, which is also in high demand among our clients, and the approval rate for it is 92%.

However, please note that it is extremely important for customers who have already received credit holidays under the state program and who are running out of the 90 days allotted by law to submit documents, to hurry up and provide them on time. If the borrowers who applied for state support do not do this, the banks will be forced to cancel the grace period, and such customers, unfortunately, will have overdue debt. If the customer does not have such documents for some reason, Sberbank can offer them to switch to their credit vacation program. The main thing is to contact us in time and avoid delay, as to solve any difficult financial situation, a timely and trusting dialogue with the Bank is necessary."

The law on credit holidays No. 106-FZ was adopted by the Government of the Russian Federation to support citizens during the pandemic. From April 3 to September 30, 2020, Bank customers whose income decreased by 30 percent or more compared to the average monthly income in 2019 could get deferred payments on loans and loans, and provide supporting documents to the lender within 90 days. This period expires in July for those who applied for a grace period in April.