Yuriy Stepanov, Finance Director, BMS Law Firm, also believes that the amendment proposed to the Russian Civil Code is advisable and may favorably impact borrowings. «Borrowers will have an option to decide how to pay their debts, through annuity payments or differentiated payments.

The former has entails many benefits, and it is the most popular option, but it does not mean that borrowers must not be given the option of differentiated payments. For many of them this step will allow them to pay off their debts with significantly less interest. Banks will benefit in the long term, as less interest, but a cancelled credit is better than an unsuccessful claim”, the expert concluded.