CENTRAL BANK MAY FORGIVE DEBTS OF PEOPLE AFFECTED BY A FLOOD IN THE SOUTH OF RUSSIA

The Central Bank offered banks and microfinance organizations to restructure loans, and even to forgive some. However, each case must be considered individually and an objective decision must be made in relation to each borrower.

This information was confirmed by the RBC's own sources at once in several large Crimean banks and MFOs, such as MoneyMan, Borrower, Instant Money and Lemon.online.

Financial institutions are encouraged to try to settle situations with loans and various types of borrowings, including mortgages.

Debts will be completely forgiven in exceptional cases.

What is more, the official letter of the Central Bank says that the financial institutions will not collect the pledged property. These measures will not affect the credit histories of borrowers. Therefore, there should be no difficulties for clients with new loans in the future.

The Central Bank confirmed the information and said that this was not the first time that such a practice is used in natural disasters. Debts have already been written off and forgiven in other regions in connection with emergencies. For example, a year and a half ago, this measure was applied to borrowers in the Irkutsk region. They were also declared affected by the flood.

Whether the borrower falls under the new regulation, the clients need to find out with their financial institutions. To do this, they need to contact a bank or MFO and attach documents confirming their status as a victim of the disaster. Based on the general practice, this is, as a rule, a certificate from the executive authority of the municipality, which states that the settlement is in a state of emergency.

Additionally, a document certifying the loss of property, business, income, etc. should be attached.

Let us remind our readers that a destructive element has come to a number of resort regions of Russia located on the Black Sea coast this summer. Heavy rains and, as a result, floods hit Sochi, Anapa, Temryuk, Kerch, Feodosia, Sevastopol and Yalta. The latter was hit the most. Then, because of the flood, 1 person died and over 50 were injured. Thousands of households estimated the damage at 200 million rubles.