Absolut Bank to reduce bad debt, Zemerov says

22 June 2009 (13:09)

‘By introducing the new terms of paying off debts, AKB Absolut Bank is probably trying to reduce the amount of bad debts on the given loans, since the bank’s borrowers can now make these payments voluntarily. As a matter of fact, the new terms can be seen as a sort of peace settlement that provides for the debtor paying off one-tenth of the debt in exchange for cancellation of fines and sanctions,’ Unicom Partner Investment and Finance Company’s Deputy GD Dmitriy Zemerov said to an UrBC reporter.

AKB Absolut Bank has recently announced that those of their customers who have delayed their loan payments can now take the advantage of the so-called amnesty. This offer means fines are cancelled for those borrowers who are willing to pay off at least 10% of the overdue sum in one installment.

‘Absolut Bank’s initiative might find support among the other banking market players. This is of course quite a risky and daring step to take, but the end justifies the means: reacting quickly is often the only efficient solution to a trying problem under the current circumstances,’ Zemerov added.

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