Russia eases bank rules to help companies restructure debt
Photo: Reuters
On December 30, Russia’s central bank eased reserve requirements for restructured loans, aiming to help heavily indebted companies, including Russian Railways, reduce their debt burdens.
The move encourages banks to follow recommendations for corporate and entrepreneurial borrowers facing temporary difficulties. Eligible companies must have a moderate debt load, a track record of timely repayments, and a realistic three-year business plan. Banks are required to monitor borrowers and adjust reserves if targets are missed, News.Az reports, citing Reuters.
Russian Railways, the country’s largest employer, is negotiating debt restructuring totaling 4 trillion roubles ($51.2 billion) amid falling cargo volumes and rising interest rates.
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