Microfinance institutions (MFIs) have legally been ordered to provide assistance to clients whose financial situation has worsened due to the coronavirus. It is about providing payment holidays on microloans if the borrower’s income has decreased by 30% or more. Central Bank of the Russian Federation has recommended the similar method.
IDF Eurasia (Moneyman) recorded decrease of requests for payment relief for the reason above. If 719 requests were received in April, then by the end of May, only 374 clients applied for deferral. So, we can easily say that the number of requests for payment holidays reduced by 50% in May. The total amount of loans, under which state easement program was used, amounted to 26 million rubles during the period from April to May 2020.
Irina Khoroshko, CEO of IDF Eurasia in Russia:
“I would like to note that the clients’ requests were met in full compliance with legal requirements and recommendations of the regulator. In turn, our own approach as a lender assumes a willingness to support borrowers in a difficult situation. The reduction in the number of requests by 50% is clearly a positive trend. At the same time, it is already understood that some of the clients will not be able to provide documentary confirmation of the deterioration of their financial situation for one reason or another. The first of them should do so by the end of June. We proactively solve the problem with these clients and use the best options for debt repayment individually.”