Russian banks ask to change the rules of the bankruptcy moratorium

Large Russian banks came up with the idea of   amending the rules providing for the introduction of a bankruptcy moratorium in Russia.  The government extended its action to both individuals and legal entities until October this year due to the difficult economic situation in the country.

Financial institutions believe that the law in this part should be changed. This applies both to the previously introduced prohibition on enforcement within the framework of enforcement proceedings, and the ability of creditors to deprive the debtor of the right to use the moratorium.

Banks believe that the ban on the enforcement, which began to operate in conjunction with the moratorium, may upset the balance of interests of borrowers and depositors, as well as lead to the destabilization of the country's financial system.

Earlier, the Federal Tax Service has already taken the initiative to abandon the idea of   suspending the collection of enforcement proceedings for the duration of the moratorium. The agency explained its position by the fact that while maintaining the validity of the norm, even solvent debtors will be able to evade their obligations, which will lead to additional financial problems on the part of their counterparties.

The relevant draft law was prepared by the Ministry of Economic Development, but has not yet been adopted.

Another initiative was the idea of   establishing the right of creditors to initiate court cases to deprive debtors of the right to apply a moratorium on bankruptcy. In this case, the applicants themselves will be required to prove that the debt did not arise due to the circumstances due to which the moratorium was introduced, Interfax reports.