The State Duma has passed a law extending the period for individuals, individual entrepreneurs, and small and medium-sized businesses to apply for credit holidays until December 31, 2023. The credit holiday program was valid from March 1, 2022 to March 31, 2023, and applies to loans issued before March 1, 2022. Borrowers are eligible to apply for a loan holiday subject to a 30% decrease in income compared to the average income in the previous year. Anatoly Aksakov, the head of the State Duma committee, stated that parliamentarians were developing a bill to introduce a permanent provision on credit holidays. Originally, the credit holiday measure was implemented in April 2020 due to financial losses caused by the COVID-19 pandemic. However, in 2022, the program was used in the context of the introduction of Western sanctions after the start of a special military operation. The provision of preferential loans to enterprises is an anti-crisis support measure against the backdrop of restrictive measures. The article was written by Lusina Balasyan.
The State Duma adopted in the third reading law, extending until December 31, 2023 the period for individuals, individual entrepreneurs and small and medium-sized businesses to apply for credit holidays. It was valid from March 1, 2022 to March 31, 2023.
The head of the State Duma committee, Anatoly Aksakov, reported that parliamentarians were developing a bill that would introduce a permanent provision on credit holidays.
Credit holidays apply to loans issued before March 1, 2022. Under the terms of the program, borrowers are eligible to apply for a loan holiday subject to a 30% decrease in income compared to the average income in the previous year.
Initially, the credit holiday measure was applied in April 2020 due to financial losses amid the COVID-19 pandemic. In 2022, they decided to use the mechanism in the context of the introduction of Western sanctions after the start of a special military operation. Preferential loans are provided to enterprises as an anti-crisis support measure against the backdrop of restrictive measures.
In conclusion, the State Duma’s decision to extend the period for individuals, individual entrepreneurs, and small and medium-sized businesses to apply for credit holidays is a positive step towards ensuring financial stability during challenging times. This measure, initially introduced during the COVID-19 pandemic and extended in the context of Western sanctions, provides much-needed relief to borrowers facing economic difficulties. Moreover, the development of a bill to introduce a permanent provision on credit holidays is a promising indication of the government’s commitment to supporting its citizens and businesses. We hope that these measures will continue to serve as effective anti-crisis support in the years to come.