UrBC, Moscow, March 20, 2019. It has been proposed that the so-called ‘mortgage break’ should apply to existing loans as well: such was the suggestion added to the Russian Parliament’s lower chamber’s decree on adopting the bill in the first reading.

‘The State Duma’s Financial Market Committee is to look into the possibility of extending the amendments discussed in the draft bill to the mortgage agreements signed before the said bill has come into effect,’ the decree says.

The bill is expected to get considered by the Parliament on March 21.

The idea is to introduce a grace period (up to six months) for those mortgage payers who find themselves in very challenging circumstances; these borrowers would be able to either put a temporary halt on the repayments or reduce their monthly repayment amount, State Duma’s press service earlier referred to Chair Vyacheslav Volodin as explaining.

‘Banks will have to process the borrowers’ papers within five days. A ‘mortgage break’ will get granted to people who’ve lost their jobs, went on Group I and II disability, lost their primary breadwinner, are temporarily unable to work (up to two months), or have had their family income (i.e. both spouses’ accumulated income) shrink by more than 30%,’ Volodin said.