Farewell to debt: who should hope for a credit amnesty. Amnesty for loan debtors - real and potential opportunities to repay all debts Amnesty for loans for individuals

Deputies of the Communist Party of the Russian Federation introduced a bill designed to facilitate loan payments for conscientious payers. The credit amnesty may come into force as early as January 1, 2016.

Prerequisites

After the sharp weakening of the ruble in 2014, many citizens who took out loans encountered difficulties in repaying. The depreciation of the ruble hit foreign currency borrowers especially hard. According to the Bank of Russia, the total amount of debt amounted to more than 10 trillion rubles.

The debt is at a record level, and the government has recognized that it is necessary to assess the situation and develop a set of measures aimed at resolving it. According to a representative of the Central Bank of the Russian Federation, the reason for the debt burden of the population was the dynamics of the loan market before 2014, which in “fed up” times reached 30-40%. Almost 70% of Russian citizens have a loan, every fifth experiences difficulties in paying interest.

Most problem borrowers in Russia are conscientious. They recognize the existence of debt obligations to banks, but are unable to pay them due to low income. Deputies from the Communist Party of the Russian Federation Rashkin and Obukhov proposed a bill that, in their opinion, should facilitate the repayment of loans.

The actions of the Central Bank of Russia, which did not refuse to help citizens who fell into debt, were sharply criticized by the people's representatives. Deputies analyzed statistics according to which 15% of borrowers are unable to repay consumer loans on time. The interest rate in microcredit is 2 times higher.

The bill does not provide for complete exemption from loan repayments. Its effect will extend to those legal relations that arose before and after the document entered into legal force.

The government is considering issues related to the maximum amount of interest under the agreement, restrictions on the right of banks to claim interest and debts on loans upon early termination of the agreement, and the cancellation of any information relating to previously overdue payments if the loan is fully repaid.

The bill is aimed at reducing loan payments, changing terms, limiting bank fines and restoring the borrower's reputation. In the future, the debtor will be able to take out a new loan for a large amount and at a minimal interest rate. The bill concerns only consumer loans issued:

• for the purchase of cars with a deposit;
• with a set limit;
• by transferring funds to a trade and service enterprise under an agreement without collateral;
• for debt refinancing;
• for a specific purpose;
• non-target without collateral.

The bill provides restrictions for consumer microloans:

• if there is security in the form of collateral;
• without collateral;
• with other types of security.

These provisions should be included in a separate article of the Federal Law of December 21, 2013 N 353-FZ “On consumer credit (loan)”.

Prospects for the bill

A credit amnesty was already planned for 2015. But the process stopped due to the adoption, which should help citizens who find themselves in difficult financial situations. Having gone through the bankruptcy procedure, citizens are released from paying all debts to borrowers.

The possibility of introducing a credit amnesty in 2016 is only being discussed in the government. Officials are trying to find a balance between respecting the interests of debtors and banks.

Many deputies publicly supported the adoption of the law; in their opinion, this is the only option in which debtors can cope with an unfavorable situation.

They also note that borrowers often take out amounts at significant interest rates due to their financial illiteracy and the incorrect policies of credit institutions. It is very difficult to challenge the provisions of contracts regarding the consequences in case of late payment of debt. Credit organizations always remain within the legal framework.

The position of the Communist Party of the Russian Federation is supported by Rospotrebnadzor. The organization seeks to protect the rights and interests of Russian citizens in this area and proposes to introduce liability for banks for unfair manipulations in relation to their clients.

Banks and microfinance organizations oppose the adoption of the bill. They believe that the adoption of the bill will unreasonably reduce their rights, and clearing the borrower’s credit history significantly increases the risks; in this case, credit organizations will be forced to tighten the rules for issuing loans. In turn, this will lead to a decrease in the availability of loans and, as a result, a decrease in purchasing power. For struggling retailers, this could be deadly. As well as for the banks themselves.

However, bank representatives stated that they are ready to provide assistance to debtors in the form of restructuring. If we evaluate the prospects of the bill, we can say with confidence that the government will not take this step. In a balancing economy, any sudden movement can be disastrous, especially in the banking sector. Well, representatives of the Communist Party of the Russian Federation, as always, will be satisfied with the PR effect and that will all end there.

• Do you support credit amnesty?

• Vote

The population of Russia is mired in debt loans, debt to banks reaches fabulous amounts, and therefore a credit amnesty in 2017-2018 is a necessary condition for the normal development of the banking sector. The difficult economic situation, the introduction of sanctions by the US and the EU, the collapse of the national currency, the annexation of Crimea in 2014 - all these are factors of instability in the financial sector, which led to the development of a bill on credit amnesty back in 2015.

Will there be a credit amnesty in 2018?

Industry experts believe that a credit amnesty law is simply necessary. The project is currently being finalized by the State Duma Committee on the Financial Market, and there is a possibility that it will be adopted and come into force on January 1, 2018. This will significantly alleviate the situation of the majority of Russians who currently do not have the opportunity to pay off their debts.

Reasons and background

The crisis situation in the economy, which has been observed over the past few years, has led to massive impoverishment of the population. Unable to calculate their financial capabilities, poor citizens rushed to borrow money from banks to cover current debts. Taking advantage of the situation, various microfinance organizations began to charge interest and collect overdue debts, fines for late payments, and demanded that they first repay not the base part of the loan, but the interest on the loan.

The first figures became known to the public in 2015. At that time, outstanding loans were about 15%, and already in the first month of the next year their number increased by 3%. Since then the situation has only gotten worse. Most conscientious borrowers cannot repay the principal portion of the loan, and penalties only contribute to an increase in subsequent debt. Lenders suffer no less losses than borrowers. This is another proof that the credit amnesty in 2017-2018 is becoming a necessity.

Bank statistics on overdue loans

Based on information from the Central Bank of Russia, in mid-2018, loan debt amounted to about 10,903 trillion rubles. This huge amount is a clear indication of how many citizens of our country have fallen into debt bondage. Such debts affect the interests of not only individuals, but also financial organizations, which, acting in the old fashioned way, have created a vicious cycle from which there is no adequate way out. It is difficult to predict whether the credit amnesty will be a timely salvation for the population.

According to the latest statistics, TRUST and Russian Standard banks account for 47% and 42% of debt in their loan portfolios, which is almost half of the total number of loans issued. The top ten included such banks as Rosgosstrakh, MTS-Bank, B&N Bank, MDM Bank, Vostochny Express and Alfa-Bank.

What is loan amnesty

If the credit amnesty in 2017-2018 comes into force on January 1, this certainly will not mean that borrowers do not have to return the money they borrowed at all. This is just a chance for citizens with a damaged credit history to try to pay off debts from microfinance organizations and banks. A number of measures will be taken that will become an outlet for conscientious payers who, for objective reasons, cannot pay on schedule.

There will likely be certain caps on interest rates and caps on penalties. It is still unknown which regulators will review the terms and whether changes will affect existing lending rates. In any case, no one will cancel the obligations that are recorded in the loan agreement signed by the individual. The 2018 credit amnesty remained on paper, perhaps next year everything will be different.

Goals of the state banking amnesty program

The state program is designed to help borrowers get out of the debt hole and pay interest on the loan based on the amount of real income; slightly reduce the financial illiteracy of the population and stop the accumulation of non-performing loans. Preliminarily provided:

• Reduced interest rates on existing loans;
• cancellation of fines and penalties after repayment of the base rate;
• limiting the size of monthly payments;
• credit history adjustment;
• cancellation of early repayment requirements.

Mechanism of action

It is not yet entirely clear how the loan debt amnesty will work in reality. Most likely, your credit history will be studied in detail, and some specific decisions will be made on its basis.

1. If a certain limit on the amount of monthly payments is introduced, a new mechanism for debt restructuring may be launched or the term of the contract may be extended.
2. It will not be possible to simply write off penalties; credit institutions will have to return lost profits, and this burden will fall on the shoulders of the borrower. True, the amount that he will have to pay as a penalty will not exceed the amount of the reduced interest.
3. At the beginning, the individual will repay the loan amount, and then pay interest on the loan. This approach will generally improve the financial condition of both lenders and borrowers.

Who needs it

Deputies from the Communist Party of the Russian Federation, who announced this bill, believe that it is equally beneficial to all parties to the conflict, although some representatives of the financial market have their doubts. The main profit of any lending organization, be it a bank or a microfinance institution, depends on interest payments. Therefore, the option of providing cash compensation through government bonds is being considered. Representatives of both sides will receive favorable conditions for solving pressing problems.

Legal regulation

So far, the bill on credit amnesty in 2017-2018 has not been adopted and is being considered by one of the State Duma committees. Information about it first appeared in 2015, and then the credit amnesty was considered a mass phenomenon, and it was assumed that the credit history of all those borrowers who were able to pay off their debts on their own would be corrected. This would allow people to take out a new loan if necessary.

The matter never went further than talk, no one forgave anyone any debts, and the legislative changes never came into force. For more than three years now, there has been a proposal from deputies from the Communist Party of the Russian Federation, providing for such provisions as:

• debt restructuring under new lending conditions;
• rate reduction;
• changing the conditions for issuing loans.

Who is the debt amnesty for?

It should be noted that not all debtors can count on any benefits with the adoption of the law on credit amnesty in 2019-2020. Firstly, it is unknown whether the law will be adopted in the coming years, and secondly, the mechanism of action is still crude and not worked out in detail, and therefore one should not expect much. In an economic crisis, this is better than nothing, but you shouldn’t hope that everyone’s debts will be written off. The application of any applicant for amnesty will be considered individually. It is not known what requirements will be imposed.

Who can take advantage of benefits in 2018

It is known that many citizens from among bona fide borrowers, as well as financial institutions, will be able to take advantage of the credit amnesty:

• banks;
• credit unions;
• individuals - holders of consumer loans.

To do this, it is necessary that nothing in the borrower’s credit history spoils the reputation of the borrower, even the presence of outstanding interest. Such citizens will be able to first repay the loan amount and then pay interest on it. This will help repay debts, simplify the procedure for applying for a loan, and the borrower, who has confirmed his physical and not legal status, will be able to avoid a lot of problems.

Video

01/10/2019, Sashka Bukashka

Once upon a time, everyone knew that amnesty applied only to criminals. But now this concept refers to those things that can concern every person: taxes and loans. Let's figure out whether there is a credit amnesty, and what the forgiveness of tax debts announced by the President of the Russian Federation means.

The debt burden of the Russian population is growing every year; moreover, many borrowers have debts on and even mortgages. This leads to the application and accrual of penalties, which means the amount of debt grows like a snowball, and the borrower is no longer able to cope with it. Can the state oblige banks to forgive citizens such debts, since rumors about the so-called credit amnesty have been circulating for a long time. Old tax debts have been forgiven. In December, the head of state made a promise, and on January 1, the law began to take effect. But who does it concern and what can debtors count on?

Tax amnesty 2019

First, let's figure out who will have their tax debt forgiven. Tax amnesty for debts of individuals did not happen in 2019! But in 2018 it was carried out. Vladimir Putin announced this measure at his annual big press conference, and the law regulating this issue was adopted as soon as possible: it came into force on 01/01/2018. So, citizens and individual entrepreneurs have a real opportunity to get rid of debts for:

• property tax;
• land tax;
• transport tax;
• fixed insurance premiums;
• (but only for writing off debts to banks, utility organizations, telephone operators and other companies).

Several conditions apply:

1. For ordinary citizens, debt must arise before 01/01/2015.
2. The individual entrepreneur must have debts with a maturity of 3 years, but accumulated by 01/01/2017.

That is, citizens will only be written off old debt, and individual entrepreneurs for insurance premiums will be written off everything that has accumulated during this period, but only on the condition that it began accumulating in 2015. If an entrepreneur owes debt only for 2016, the debt will not be forgiven.

Please note: if the debt arose over the past year or two because you did not receive a receipt for payment, then it will not be forgiven. Debts will have to be paid.

It was initially announced that the amount that would be written off to tax debtors was approximately 40 billion rubles, and that 42 million Russians would receive relief. However, after a thorough audit of debts carried out by the Federal Tax Service, it turned out that as much as 250 billion rubles would have to be forgiven. Indeed, in addition to the taxes themselves, debtors will be relieved of penalties for them, which in some cases are several times higher than the amount of the principal debt.

Bad debt

Officials note that most of the debt covered was already hopeless for collection. But it creates significant difficulties for debtors, interferes with their free movement, and blocks bank accounts. In addition, some taxes, for example personal income tax, accrued on so-called conditional income, do not make sense at all.

According to the law, if the bank or utility companies were unable to collect a debt from a citizen and wrote it off, he received income in the amount of the written off debt and must pay personal income tax. The tax is the traditional 13% of the amount written off. But if the debtor did not have funds to pay the creditor, where will he get them to pay the state for this sudden personal income tax?

The President directly called such actions of tax agents “senseless,” but did not make any other proposals other than writing off the already accumulated amount, and meanwhile in 2019 the situation with such personal income tax will only worsen, because last year amendments came into force clarifying the procedure for it accruals and responsibilities of tax agents and payers.

Where to apply under the tax amnesty

Citizens and individual entrepreneurs will not have to prove their right to debt forgiveness. The Federal Tax Service will independently determine who and how much to forgive, and all debt covered by the amnesty will be written off automatically and out of court.

Although, all this should have happened last year. And if this does not happen, then in this case it is worth contacting the tax office for clarification.

Credit amnesty is a myth

Judging by official sources, the total amount of loans in Russia is more than 200 trillion rubles. It turns out that this is 16% of our state’s GDP. In this regard, it is not surprising that the amnesty for loans for individuals in 2019 is on everyone’s lips. But legislators and even the head of state simply will not be able to afford such luxury, even in state-owned banks. After all, such a measure will lead credit institutions and the country’s budget to complete financial collapse. Even simply reducing the borrower's obligations to the bank is a very difficult task. This was clearly demonstrated by the situation with mortgage loans in foreign currency. Then the borrowers did not receive any real help from officials.

What about the 2019 tax amnesty? There are also large sums that were forgiven to citizens, but these are direct budget revenues. The fact of the matter is that these are incomes on paper, that is, unsupported obligations. But banks gave real money to borrowers and they still have to return it. You cannot borrow from a neighbor and then come to him and say: “Forgive me.” Therefore, if a bill on credit amnesty appears, it will only affect fines and penalties that banks generously charge to defaulters. True, conversations about such an initiative have been going on for several years, but its real implementation has not yet appeared. The only preference that borrowers received was a limitation on the amount of fines and penalties that could be assessed. The total amount cannot exceed twice the amount of the outstanding balance. And that's all for now. True, there are still several other bills in development, but their fate is still unclear.

So, the amnesty for loan debtors in 2019 is a myth; no one will conduct it centrally. More specifically, contact the bank to which you owe money and ask them whether they will forgive your debts.

What issues are considered under the amnesty?

So, the main provisions of the bills within the framework of the so-called credit amnesty provide for:

• an official ban on credit institutions (banks and microfinance organizations) demanding immediate repayment of loan amounts under the threat of accrual of interest for overdue payments;
• interest accrual must occur within the limits established by law;
• Penalties also cannot be unlimited and excessively inflated; even the contract must specify their amount in advance.

Lawmakers promise, but banks deliver

There will still be an amnesty for loans in 2019. True, not all enslaved individuals can count on it, but only those whose bank announces a special promotion. Such amnesties for debtors in credit institutions are not uncommon and are practiced annually. Bankers offer borrowers to pay the principal, and in return write off penalties and even interest. Such promotions have beautiful names. For example, VTB had a “Credit Thaw”, and Svyaz-Bank had a “Moments of Spring”; in other banks, borrowers were offered a credit amnesty. True, as part of these actions, banks alleviate the fate of only conscientious payers, with good income, those who faithfully fulfilled their obligations, and then fell into a financial crisis. Those citizens who received money and immediately stopped paying the creditor should not count on such concessions. Most likely, they will face communication with debt collectors or even legal proceedings. True, the courts often reduce the amount of the penalty several times, but that’s another story.

Currently in Russia, the debt of ordinary citizens to banks is very high. At the same time, overdue debt makes up a fairly impressive portion of the total amount of loans. To ensure that the credit market does not collapse and people can continue to pay off their financial obligations, the state decided to create a new program to ease the credit burden on ordinary Russian citizens.

The essence of the program

Currently, a program is being developed that implies the possibility of providing a credit amnesty to loan debtors. Its goal is to reduce the debt burden of the population who are unable to pay off their existing debts. This law has not yet entered into force and is being finalized. But there is a high probability that it will come into force soon.

According to available information, the total debt on credit obligations in Russia is about 11 trillion rubles, so many banks lack working capital to conduct normal financial activities. The most difficult situation is now in the Russian Standard and Trust banks, as they provide loans to many unreliable borrowers.

The program does not imply complete exemption of borrowers from payment of their obligations; the following actions are planned:

• setting limits on interest rates; accordingly, banks will have to change loan agreements with borrowers and recalculate the payment schedule taking into account the lower interest rate;
• introduction of restrictions on accrued penalties in case of late payments;
• cancellation of fines and accrued interest after the total amount of debt with initial interest is fully repaid;
• a credit history that was damaged due to objective circumstances will be adjusted for the better;
• demands for early repayment of debt will be invalid.

The signed agreements themselves will not be cancelled, only changes can be made to them, which will be formalized as an additional agreement.

Mechanism

At present, the mechanism of action of this program is not yet clear. The Legislative Assembly is still discussing how this program should operate in order to actually ease the credit burden for citizens, but at the same time ensure that banks return the funds issued with the interest that is necessary for making a profit and the full functioning of credit institutions.

So far, the discussion is about installing the following mechanisms of the program:

1. When setting limits on annual interest on existing loans, credit institutions will be forced to revise the established payment schedule in cases where the actual interest turns out to be too high. In this case, there may be 2 ways: one of them will involve debt restructuring, and the other will involve refinancing. In any case, this will lead to a reduction in the monthly payment, and, at the request of the borrower, it is also possible to increase the term of the agreement.
2. The penalty itself cannot be completely canceled, since in this case the banking organization may remain at a loss from the issued loan products. But penalties must be transferred taking into account the change in the remaining amount of debt after recalculation of the interest rate.
3. It is possible to establish a mechanism where, first, citizens will pay only the principal amount of the loan, and only then the accrued interest and penalties.

It is important that the mechanism is clearly regulated by law and credit organizations cannot deceive citizens when renegotiating terms. The establishment of an amnesty, which is planned to be carried out throughout 2019 and 2019, should ease the credit burden on many citizens who currently find themselves in a difficult financial situation, and now their loans are subject to high penalties and fines.

However, this project has not yet been established by law, so what should citizens who find themselves in a difficult credit situation do now? Currently, this situation can also be improved.

Options for reducing credit burden

There are several options that can help you change your difficult credit situation. These methods include:

1. Submitting an application for a credit holiday. If a person has temporarily lost his permanent income, but is looking for a job and must find one within a few months, then he can write an application addressed to the head of the bank branch where he received the loan. In this case, you will need to provide documentary evidence of the reasons for the loss of permanent income.
2. Submitting an application for debt restructuring. This method is relevant when a person’s income has decreased significantly for an indefinite period. The bank may revise the loan term, as a result of which the monthly payment will change downward. But you need to know that not a single credit institution will do this at a loss, so the total amount of the overpayment will be additionally increased. However, this step will help you pay off your obligation in a timely manner without delays or penalties. In addition, the borrower's credit history will remain in good condition.
3. Submitting an application for refinancing. It is better to submit such an application as soon as a difficult financial situation arises. In this case, the application can be sent to various banks, including the one where the loan has already been issued. Before there are any delays on the old loan, you need to have time to refinance it at a lower interest rate or for a longer period. Due to this, the monthly payment will decrease and repaying the loan will become much easier.
4. If the property was purchased with a mortgage, then it is possible to return the income tax, which is paid by each citizen monthly or annually. The maximum tax amount is 260 thousand, which is 13% of 2 million. In addition, you can return 13% of the interest paid on the mortgage loan. Accordingly, you can return a decent amount per year, but only within the amount of taxes paid. This money will be transferred to the specified bank account 3-4 months after submitting the application. They can be used for partial early repayment of the loan, which will significantly reduce the monthly payment or the term of the loan agreement itself.

The last 2 methods are the most profitable. At the same time, refinancing has several other positive advantages that you can take advantage of:

• you can combine several existing loans into one, which will combine the interest rate on them, and can make it much more profitable than each loan separately;
• With the help of refinancing, you can change the currency in which the debt is repaid; for this you will only need to issue a loan in the currency that is required;
• if necessary, you can release the pledged property as security for your obligation; to do this, you simply need to take out a consumer loan instead of a mortgage or car loan;
• When you switch to another bank, you can receive additional bonuses and points that can be used in the future.

Using this method, the borrower will not only not ruin his credit history, but will also be able to significantly save on possible penalties that would be accrued to him if the payment is late. In the future, it will be possible to take advantage of the amnesty if it is developed on conditions favorable to citizens. But we can’t hope for it yet, so we need to look for other ways to pay off debts. Because it does not promise complete relief from loans, but only implies the creation of favorable conditions for their repayment.

The latest news is more than encouraging: the Central Bank is talking about reducing the base rate, Gref shares this position, but most of our fellow citizens are interested in what exactly awaits us in the coming 2016. Borrowers are especially interested in the upcoming state of affairs: how such statements can affect the entire situation.

Where it all started

If we delve into the root causes of these statements, we will come across a fact back at the end of 2014, when, in order to support the national currency and stabilize it, the base lending rate was raised by the Central Bank from 10.5% to 17%. Of course, this event left its mark on the financial services market. Following the Central Bank, commercial banks began to raise fees for services. Already in the second half of 2014 and the beginning of 2015, it became noticeable that the number of loans issued to individuals decreased or almost dropped to zero. This decline in the issuance of banking products was also contributed to by the general economic crisis in the country and the fall in the income level of the population. People stopped believing in their future financial stability and relying on their own strengths, so they gave up loans completely.

On the other hand, a new problem has appeared for banks - non-payment of already issued loans. Most lenders are on the verge of profitability, so it is now difficult to talk about whether all banks will be able to reduce interest on loans.

About joyful things. Reduced rates

And although it is still very early to say anything for sure, at the end of June 2015 the Central Bank announced a reduction in the rate from 17% to 11.5%. Yes, this is not the previous 10.5%, but it is only 1% away from this figure. Gref German (the first head of Sberbank) then made a similar statement that his institutions were ready to lower interest rates. Paying attention specifically to Sberbank of Russia in our article, we will deviate a little from the key point and remind readers that this bank is recognized as a leader in the Russian market in many respects: the first in terms of equity capital and net assets.

But what could a rate cut mean for everyone? Analysts are confident that, following the Central Bank and Sberbank, other lenders will join in the reduction in order to withstand the current competition. But the fall will not happen immediately, in one month. It may take this and next year, so we are patient and wait.

What else could happen in the banking segment in 2016? Of course, this is a loan amnesty. If anyone still doesn’t know when this event will take place, then let’s reveal a secret: the launch is expected on January 1, 2016. But evil defaulters should not wait for all debts and arrears to be written off.

What benefits await debtors?:

• 1. limiting the amount of payments of fines and rates,
• 2. limiting the volume of the annual rate under the loan agreement,
• 3. limiting the amount of the amount for failure to fulfill one’s obligations,
• 4. Elimination of all negative notes in the credit history if the loan is fully repaid.

This project was proposed by the First Deputy of the Central Committee of the Communist Party of the Russian Federation Valery Rashkin. He and his fellow party members are confident that such monetary enslavement of the population arose due to financial illiteracy of the people: they took much more than they could return. Now, ever-increasing fines and delays are making it even more difficult for them to pay.

But economic experts look at the whole situation a little differently: they believe that the banking sector will completely drive itself into a corner with such a drop in rates and will lose huge unreturned profits. In addition, the current situation will force banks to select candidates for the role of their borrowers even more carefully.

A little about mortgages

In mortgage lending for 2016, we certainly don't need to expect the 6% from Vladimir Putin's pre-election promises, but a slight decline should still occur. Nothing will change for preferential mortgage holders; they will pay the least amount as before, the amount closest to 6%.

Let's hope that all the horrors of the economic crisis are behind us, and a period of stabilization and cost reduction lies ahead.