Russia's New Law Offers Loan Payment Deferrals to Struggling Businesses
Businesses across Russia are set to receive a financial lifeline with a new law allowing business loan payment deferrals. Starting October 1, businesses can postpone repayments regardless of revenue decline.
The new legislation, effective for loans issued after March 1, 2024, offers relief tailored to business size. Self-employed individuals and micro-enterprises can defer up to 10 million and 60 million rubles respectively. Small businesses can postpone up to 400 million rubles, while medium-sized businesses can defer up to 1 billion rubles. This measure can be taken once every 5 years, with a deferral period of 6 months per loan.
While the law provides much-needed support, it's important to note that interest will continue to accrue during the deferral period. This could potentially increase monthly payments once the deferral ends.
The business loan payment deferral law aims to ease financial burdens on Russian businesses. With varying limits based on business size, it offers a safety net for those facing revenue decreases. However, businesses should carefully consider the potential impact of continued interest accrual during the deferral period.
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