Russia Introduces Loan Holidays for Businesses Amid Economic Challenges
A new law in Russia introduces loan holidays for enterprises, regardless of revenue decrease. This measure allows businesses to temporarily pause loan repayments without facing penalties.
The scheme, effective from October 1, applies to loans taken out under preferential lending programs from March 1, 2024. It covers microenterprises up to 60 million rubles, small enterprises up to 400 million rubles, and medium-sized enterprises up to 1 billion rubles.
Entrepreneurs can defer payments for a maximum of six months, with interest continuing to accrue at the contract rate and added to the principal monthly. Self-employed individuals can also apply for deferrals on loans up to 10 million rubles. However, each loan can only be deferred once every five years.
This law aims to support businesses by providing temporary relief from loan repayments, helping them navigate challenging economic conditions. It's important to note that the specific terms and eligible banks for loan holidays in Germany, for companies not in payment default, are typically negotiated on a case-by-case basis and not publicly specified.
