Russia"s Sberbank announced on Wednesday...
From February 1 until May 1, Russia"s largest bank, which holds more than half of household deposits, will offer individuals with overdue debts on loans or problems with loan repayment the possibility to restructure or refinance their liabilities, the bank"s press office said.
As the Russian economy boomed in the latter half of the 2000s, Russian consumers took advantage of cheap credit to buy cars or electronic goods, and renovate or purchase apartments, but many have struggled to meet payments amid job losses and falling wages.
Sberbank, in which Russia"s Central Bank holds a controlling stake, is prepared to restructure and refinance loans that are up to 90 days in arrears, and also restructure loans claimed in courts that have not yet passed decisions on early recovery of the debt.
Sberbank"s retail loan portfolio shrank 6.9% in 2009 to 1,170 billion rubles ($39 billion) due to sluggish consumer demand for loans on the back of falling disposable income.