Banks massively refuse to restructure debts to Russians

Banks are massively denying Russians debt restructuring and credit holidays. 80% of applications are rejected, the Central Bank's press service told Izvestia.

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Debt restructuring is a relaxation of the terms of the agreement for the borrower. The number of applications for credit holidays in the second quarter of 2025 increased 2.2 times compared to the same period in 2024, to 233.8 thousand, and for mortgage loans — by 30% (to 6.5 thousand). The volume of applications for restructuring under banks' own programs increased by 87% to 1.5 million, the Bank of Russia reported.

Credit organizations also provide their own loan restructuring programs. The most popular option is to extend the loan term to reduce the monthly payment. Borrowers can also apply for a reduction in the interest rate.

By massively rejecting requests for debt restructuring, banks are condemning borrowers to debt bondage and bankruptcy, says Natalia Milchakova, a leading analyst at Freedom Finance Global. So, in the first half of 2025, almost 260 thousand individuals were declared bankrupt in court, which is 36% more than in the same period last year.