INSTRUCTION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of January 20, 2020 No. 5391-U

About procedure for forming by the microfinancial organizations of reserves on possible losses on loans

This Instruction based on article 76.4 of the Federal Law of July 10, 2002 No. 86-FZ "About the Central bank the Russian Federation (Bank of Russia)" (The Russian Federation Code, 2002, No. 28, Art. 2790; 2013, No. 30, the Art. 4084), Item 5 of part 4 of article 14 of the Federal Law of July 2, 2010 No. 151-FZ "About microfinancial activities and the microfinancial organizations" (The Russian Federation Code, 2010, No. 27, Art. 3435; 2019, No. 31, the Art. 4430) and according to the solution of the Board of directors of the Bank of Russia (the minutes of the Board of directors of the Bank of Russia of December 24, 2019 No. 35) establish procedure for forming by the microfinancial organizations of reserves on possible losses on loans.

1. Reserves on possible losses on loans shall be created by microfinance company monthly as of the last date based on accounting data without the other expenses (costs according to the transaction) connected with issue (placement) of money according to the loan agreement, the created reserves under impairment and the adjustments provided by Items 1. 12, 1.13 and 1.23 Provisions of the Bank of Russia of October 1, 2015 No. 493-P "Industry standard of financial accounting by not credit financial credit institutions of transactions on issue (placement) of money according to loan agreements and bank deposit agreements", No. registered by the Ministry of Justice of the Russian Federation on October 15, 2015 39330, on December 20, 2016 No. 44834, on September 5, 2017 No. 48082, on September 7, 2017 No. 48108, on November 25, 2019 No. 56612 (further - the Provision of the Bank of Russia No. 493-P), for date of forming of reserves on possible losses on loans.

2. Reserves on possible losses on loans shall be created by the microcredit company quarterly as of the last number of quarter based on accounting data without the other expenses (costs according to the transaction) connected with issue (placement) of money according to the loan agreement, adjustments and the created reserves under impairment provided by items 4. 10, 4.20 and 4.43 Provisions of the Bank of Russia of October 25, 2017 No. 612-P "About procedure for reflection on accounts of financial accounting of objects of financial accounting by not credit financial credit institutions", No. registered by the Ministry of Justice of the Russian Federation on December 11, 2017 49203, on January 14, 2019 No. 53337, on June 17, 2019 No. 54943 (further - the Provision of the Bank of Russia No. 612-P), or Items 1. 12, 1.13 and 1.23 Provisions of the Bank of Russia No. 493-P if the microcredit company according to Item 1.1 of the Provision of the Bank of Russia No. 612-P made the decision not to apply the Provision of the Bank of Russia No. 612-P, for date of forming of reserves on possible losses on loans.

3. Reserves on possible losses on loans shall be created by the microfinancial organization for the requirements specified in item 4 of this Instruction of the loan agreements signed by the microfinancial organization including before acquisition of the status of the microfinancial organization by it (further - the signed loan agreement), and of the loan agreements acquired by the microfinancial organization including before acquisition of the status of the microfinancial organization by it (further - the acquired loan agreement) (further in case of joint mentioning - the loan agreement).

4. Reserves on possible losses on loans shall be created by the microfinancial organization for the following requirements:

on principal debt, the added percent, other payments for benefit of the microfinancial organization, and also on penalty (penalties, penalty fee) in the amount awarded by court or recognized by the borrower according to the signed loan agreement (further - requirements for the signed loan agreement);

on principal debt, the added percent, other payments for benefit of the creditor, and also on penalty (penalties, penalty fee) in the amount awarded by court or recognized by the borrower according to the acquired loan agreement in the amount equal to value of acquisition by the microfinancial organization of the specified requirements;

on percent, other payments for benefit of the microfinancial organization, and also on penalty (penalties, penalty fee) in the amount awarded by court or recognized by the borrower, according to the acquired loan agreement, added from the moment of acquisition by the microfinancial organization of the specified requirements.

5. Reserves on possible losses on loans shall be created by the microfinancial organization with risks of origin at the microfinancial organization of losses (further - risks of emergence of losses) in connection with availability of one or several of the following circumstances.

5.1. Overdue debt availability according to requirements for the signed loan agreement and (or) for the requirements for the acquired loan agreement specified in paragraphs three and the fourth item 4 of this Instruction (further in case of joint mentioning - agreement requirements of loan).

5.2. Use by the borrower of loan not on the purpose defined by the loan agreement.

5.3. Absence at the microfinancial organization of the documents confirming implementation of the transaction with the borrower including copy of the loan agreement or loan agreement signed by the third party and acquired by the microfinancial organization.

5.4. Recognition of the borrower by insolvent (bankrupt) or introduction concerning the borrower of insolvency proceedings according to the Federal Law of October 26, 2002 No. 127-FZ "About insolvency (bankruptcy)" (The Russian Federation Code, 2002, No. 43, Art. 4190; "The official Internet portal of legal information" (www.pravo.gov.ru), on December 28, 2019) (further - the Federal Law "About Insolvency (Bankruptcy").

5.5. Finding of the borrower - the legal entity in the course of liquidation.

5.6. Cancellation (response) of the license of the borrower - not credit financial credit institution, exception of information about the borrower - not credit financial credit institution from the register (the state register) which maintaining is performed by the Bank of Russia.

5.7. Availability of the signs of impairment according to agreement requirements of loan determined by microfinance company with observance of regulations, stipulated in Item 2.29 Provisions of the Bank of Russia No. 493-P.

5.8. Availability of the signs of impairment according to agreement requirements of loan determined by the microcredit company with observance of regulations, stipulated in Item 3.9 Provisions of the Bank of Russia No. 612-P or Item 2.29 of the Provision of the Bank of Russia No. 493-P if the microcredit company according to Item 1.1 of the Provision of the Bank of Russia No. 612-P made the decision not to apply the Provision of the Bank of Russia No. 612-P.

5.9. Debt restructuring of the borrower according to the loan agreement by the conclusion the microfinancial organization with the borrower of the agreement improving terms of the contract of loan for the borrower and changing conditions of earlier signed loan agreement including the term and (or) procedure for obligation fulfillment according to the loan agreement, procedure of payments and the size of interest rate for the loan agreement, except as specified, when terms of the contract of loan are changed according to articles 6.1-1, 6.1-2 of the Federal Law of December 21, 2013 to No. 353-FZ "About consumer loan (loan)" and (or) when payments on account of obligation fulfillment of the borrower according to the loan agreement arrive the microfinancial organization without violation of the amount and terms provided by the payment schedule according to the loan agreement within 180 calendar days from the date of the last change of terms of the contract of loan.

5.10. Refinancing of debt of the borrower on the loan agreement by the conclusion with it the new loan agreement stopping requirements of the microfinancial organization for the loan agreement which is available with the same borrower, except as specified, when payments on account of obligation fulfillment of the borrower according to the new loan agreement arrive the microfinancial organization without violation of the amount and terms provided by the payment schedule according to the new loan agreement within 180 calendar days from the date of its conclusion.

5.11. Receipt in the microfinancial organization of data, including claims, addresses, requests, that person specified in the loan agreement as the borrower did not sign the loan agreement with the microfinancial organization, except for case of establishment by the microfinancial organization and (or) authorized state bodies of the fact of the conclusion by the microfinancial organization of the loan agreement with person specified in the loan agreement as the borrower.

5.12. Ceased to be valid according to the Instruction of the Central bank of the Russian Federation of 29.06.2022 No. 6178-U

6. The microfinancial organization shall group requirements for loan agreements depending on:

type of the borrower, all-in cost of consumer loan, availability of the re-structured and (or) refinanced agreement requirements of loan on the groups specified in line of 1 appendix to this Instruction;

availability and type of providing according to agreement requirements of loan on the subgroups specified in line 2 appendices to this Instruction;

availability and duration of overdue payments according to agreement requirements of loan on the groups specified in column of 1 appendix to this Instruction.

In case of availability of two and more loan agreements with the same borrower of the requirement for each loan agreement are grouped according to requirements of this Item.

6.1. The microfinancial organization shall carry agreement requirements of loan to one of the groups specified in line of 1 appendix to this Instruction taking into account the following.

6.1.1. Belonging of individual entrepreneurs and legal entities to subjects of small and medium entrepreneurship shall be determined by the microfinancial organization based on availability of information about such persons in the register of subjects of small and medium entrepreneurship which maintaining is performed by the federal executive body performing functions on control and supervision of compliance with law about taxes and fees according to article 4.1 of the Federal Law of July 24, 2007 No. 209-FZ "About development of small and medium entrepreneurship in the Russian Federation" (The Russian Federation Code, 2007, No. 31, Art. 4006; 2016, No. 1, Art. 28; 2019, No. 30, the Art. 4147), for the date which is not exceeding 5 working days before date of the conclusion of the loan agreement according to the signed loan agreement and (or) before date of acquisition of requirements for the acquired loan agreement, but no later than date of forming of reserves on possible losses on loans according to Items 1 and 2 of this Instruction.

Belonging of the physical persons who are not individual entrepreneurs to the physical persons applying special tax regime "Tax on the professional income" according to the Federal Law of November 27, 2018 No. 422-FZ "About carrying out experiment on establishment of special tax regime "Tax on the professional income" (The Russian Federation Code, 2018, No. 49, Art. 7494; 2021, No. 27, the Art. 5133), shall be determined by the microfinancial organization based on the certificate of registration (removal from accounting) of physical person provided by the borrower as the taxpayer of tax on the professional income (KND 1122035) for the date which is not exceeding 5 working days before date of the conclusion of the loan agreement according to the signed loan agreement and (or) before date of acquisition of requirements for the acquired loan agreement, but no later than date of forming of reserves on possible losses on loans according to Items 1 and 2 of this Instruction.

6.1.2. Agreement requirements of loan shall be recognized the microfinancial organization re-structured in the presence of the circumstance specified in subitem 5.9 of Item 5 of this Instruction.

6.1.3. Agreement requirements of loan shall be recognized the microfinancial organization refinanced in the presence of the circumstance specified in subitem 5.10 of Item 5 of this Instruction.

6.2. The microfinancial organization shall carry agreement requirements of loan to one of the subgroups specified in line 2 appendices to this Instruction taking into account the following.

6.2.1. Agreement requirements of loan shall be recognized provided with pledge (mortgage) if for the date which is not exceeding 15 working days before date of the conclusion of the loan agreement according to the signed loan agreement and (or) before date of acquisition of requirements for the acquired loan agreement and in subsequent at least once a year the cost of subject (objects) of pledge (mortgage) of the loan agreement less the amount of other obligations provided with this subject of pledge (mortgage) exceeds the amount of agreement requirements of loan, and calculation of cost of subject (objects) of pledge (mortgage) is perfromed by the microfinancial organization according to the document approved by it providing including procedure for collection and reflection of information on availability (absence) of encumbrance of subject (objects) of pledge (mortgage) and its market value determined with use of approaches similar No. 135-FZ stated in article 3 of the Federal Law of July 29, 1998 "About estimative activities in the Russian Federation" (The Russian Federation Code, 1998, No. 31, Art. 3813; 2016, No. 27, Art. 4293).

6.2.2. Agreement requirements of loan shall be recognized provided with independent guarantee if the amount and term on which it is issued, are not subject to reduction, and the independent guarantee is irrevocable and is issued on the amount exceeding the amount of agreement requirements of loan.

6.2.3. Agreement requirements of loan shall not be recognized secure if:

the pledger, and (or) the guarantor, and (or) the guarantor according to the loan agreement are recognized as insolvent (bankrupts) or concerning them insolvency proceedings according to the Federal Law "About Insolvency (Bankruptcy)" are entered;

the pledger, and (or) the guarantor, and (or) the guarantor according to the loan agreement who are legal entities are liquidated or are in process of liquidation;

subject of pledge are shares (share) of the microfinancial organization - the creditor;

the subject of pledge is lost;

issuer (person obliged on securities) provided as proof of securities is the borrower or the microfinancial organization - the creditor.

6.3. The microfinancial organization shall carry agreement requirements of loan to one of the groups specified in column of 1 appendix to this Instruction taking into account the following.

6.3.1. Duration of overdue payments according to the acquired loan agreement shall include duration of overdue payments until acquisition of requirements for the acquired loan agreement, the specified in paragraphs three and the fourth item 4 of this Instruction.

6.3.2. At the different duration of overdue payments according to requirements for one loan agreement duration of overdue payments under such agreement shall be recognized to the equal largest duration of overdue payments on one of requirements for such loan agreement.

6.3.3. In case of overdue debt according to agreement requirements of loan concerning which debt restructuring according to the loan agreement according to subitem 5.9 of Item 5 of this Instruction and (or) refinancing of debt on the loan agreement according to subitem 5.10 of Item 5 of this Instruction is carried out duration of overdue payments according to the agreement requirements of loan specified in this subitem shall include:

duration of the overdue payments according to agreement requirements of loan which arose before date of the last change of terms of the contract of loan in case of debt restructuring according to the loan agreement and (or) before date of the conclusion of the new loan agreement when refinancing debt on the loan agreement;

duration of the overdue payments according to agreement requirements of loan which arose after date of the last change of terms of the contract of loan in case of debt restructuring according to the loan agreement and (or) after date of the conclusion of the new loan agreement when refinancing debt on the loan agreement.

6.3.4. Ceased to be valid according to the Instruction of the Central bank of the Russian Federation of 29.06.2022 No. 6178-U

7. Reserves on possible losses on loans shall be created by the microfinancial organization in the amount received by multiplication of the amount of requirements for each loan agreement or the amount of requirements for loan agreements on each group of requirements for loan agreements grouped according to Item 6 of this Instruction on the greatest of the following sizes:

the minimum size of percent from the amount of agreement requirements of loan specified in appendix to this Instruction, corrected according to Item 8 of this Instruction (further - the minimum size of percent from the amount of agreement requirements of loan) and conforming to the group of agreement requirements of loan determined according to Item 6 of this Instruction according to which the reserve on possible losses on loans is created;

the percent size from the amount of agreement requirements of loan established by internal documents of the microfinancial organization and conforming to the group of agreement requirements of loan determined according to Item 6 of this Instruction according to which the reserve on possible losses on loans is created.

Reserves on possible losses on loans shall not exceed the amount of requirements for each loan agreement according to which they are created.

8. For forming of reserves on possible losses on loans according to Item 7 of this Instruction the minimum size of percent from the amount of agreement requirements of loan shall be corrected by the microfinancial organization taking into account the following:

if duration of overdue payments according to agreement requirements of loan during the different periods within year before date of forming of reserves on possible losses on loans in total constitutes 180 calendar days and more, the minimum size of percent from the amount of agreement requirements of loan shall be increased by 10 at least percent points, except for case when duration of overdue payments according to agreement requirements of loan continuously constitutes 180 calendar days and more;

in case of availability of one or several circumstances specified in subitems 5.3 - 5.6, 5.11 Item 5 of this Instruction, the minimum size of percent from the amount of agreement requirements of loan shall constitute at least 99 percent;

in case of availability of two and more loan agreements with the same borrower for the purposes of adjustment of the minimum size of percent from the amount of requirements for each loan agreement with the same borrower duration of overdue payments according to each loan agreement with the same borrower shall be recognized to the equal largest duration of overdue payments according to the loan agreement among all loan agreements with the same borrower.

9. By results of forming of reserves on possible losses on loans the microfinancial organization shall constitute the document containing information on the amount of the requirements for each loan agreement grouped according to Item 6 of this Instruction on risks of emergence of losses in connection with availability of one or several circumstances specified in Item 5 of this Instruction concerning requirements for each loan agreement (with indication of such circumstances), about percent size from the amount of requirements for each loan agreement according to Item 7 of this Instruction.

10. This Instruction becomes effective after 180 days after day of its official publication.

The microfinancial organization shall create reserves on possible losses on loans according to the requirements from loan agreements which arose before entry into force of this Instruction, according to the procedure, established by this Instruction, including to perfrom calculation of cost of subject (objects) of pledge (mortgage) according to subitem 6.2.1 of Item 6 of this Instruction, as of the day of forming by the microfinancial organization of reserves on possible losses on loans specified in Items 1 and 2 of this Instruction, following behind day of entry into force of this Instruction.

From the date of entry into force of this Instruction to recognize invalid:

Instruction of the Bank of Russia of June 28, 2016 No. 4054-U "About procedure for forming by the microfinancial organizations of reserves on possible losses on loans", registered by the Ministry of Justice of the Russian Federation on July 28, 2016 No. 43023;

Instruction of the Bank of Russia of June 13, 2017 No. 4406-U "About modification of the Instruction of the Bank of Russia of June 28, 2016 No. 4054-U "About procedure for forming by the microfinancial organizations of reserves on possible losses on loans", registered by the Ministry of Justice of the Russian Federation on July 6, 2017 No. 47310.

Appendix

to the Instruction of the Bank of Russia of 20.01.2019 No. 5391-U "About procedure for forming by the microfinancial organizations of reserves on possible losses on loans"

Group of requirements for loan agreements and the minimum size of percent from the amount of requirements for loan agreements

 

1			Groups of agreement requirements of loan depending on type of the borrower, term and the amount of agreement requirements of loan, availability of the re-structured and (or) refinanced agreement requirements of loan
			Agreement requirements of loan, concluded for the purpose of, not connected with implementation of business activity, the all-in cost of consumer loan on which calculated according to article 6 of the Federal Law of December 21, 2013 No. 353-FZ "About consumer loan (loan)" (further respectively - the Federal Law No. 353-FZ, PSK), makes 250 or more annual interest rates, to physical persons (further - agreement requirements of loan on which PSK constitutes 250 or more annual interest rates)	Agreement requirements of loan, concluded for the purpose of, not connected with implementation of business activity, to physical persons, except for agreement requirements of loan on which PSK constitutes 250 or more annual interest rates			Agreement requirements of loan, concluded for the purpose of, connected with implementation of business activity, to the individual entrepreneurs and legal entities who are subjects of small and medium entrepreneurship and also to the physical persons applying special tax regime "Tax on the professional income" and not being individual entrepreneurs				Agreement requirements of loan to the individual entrepreneurs and legal entities who are not subjects of small and medium entrepreneurship			The re-structured and (or) refinanced agreement requirements of loan on which PSK constitutes 250 or more annual interest rates	The re-structured and (or) refinanced agreement requirements of loan, except for re-structured and (or) refinanced agreement requirements of loan on which PSK constitutes 250 or more annual interest rates
2			Subgroups of agreement requirements of loan depending on availability and type of providing according to agreement requirements of loan
			No	The agreement requirements of loan provided with the guarantee, and (or) independent guarantee, and (or) pledge (except mortgage)	The agreement requirements of loan provided with mortgage	No	The agreement requirements of loan provided with the guarantee and (or) the state guarantee, municipal guarantee at the expense of budgetary funds within the state support of subjects of small and medium entrepreneurship or the guarantee and (or) the independent guarantee issued by the regional warranty organization conforming to requirements of article 15.2 of the Federal Law of July 24, 2007 No. 209-FZ "About development of small and medium entrepreneurship in the Russian Federation" (further - RGO)	The agreement requirements of loan provided with the guarantee, and (or) independent guarantee, and (or) pledge (except mortgage), except for the requirements provided with the guarantee at the expense of budgetary funds within the state support of subjects of small and medium entrepreneurship or the guarantee and (or) the independent guarantee issued to RGO	The agreement requirements of loan provided with mortgage	No	The agreement requirements of loan provided with the guarantee, and (or) independent guarantee, and (or) pledge (except mortgage)	The agreement requirements of loan provided with mortgage	No	No	The agreement requirements of loan provided with the guarantee, and (or) independent guarantee, and (or) pledge (except mortgage), and (or) the state guarantee, municipal guarantee at the expense of budgetary funds within the state support of subjects of small and medium entrepreneurship	The agreement requirements of loan provided with mortgage	No
	1		2	3	4	5	6	7	8	9	10	11	12	13	14	15	16
3	Groups of agreement requirements of loan depending on availability and duration of overdue payments according to agreement requirements of loan	Agreement requirements of loan without overdue payments	0	0	0	0	0	0	0	0	0	0	0	20	2	1,5	5
4		Agreement requirements of loan with overdue payments lasting from 1 up to 7 calendar days	0	0	0	0	0	0	0	0	0	0	0	20	2	1,5	5
5		Agreement requirements of loan with overdue payments lasting from 8 up to 30 calendar days	50	1,5	0	3	1,5	1,5	0	3	1,5	0	3	50	5	1,5	10
6		Agreement requirements of loan with overdue payments lasting from 31 up to 60 calendar days	80	7	0	10	5	5	0	10	7	0	10	80	20	1,5	30
7		Agreement requirements of loan with overdue payments lasting from 61 up to 90 calendar days	90	15	0	20	10	10	0	20	15	0	20	90	40	1,5	50
8	Groups of agreement requirements of loan depending on availability and duration of overdue payments according to agreement requirements of loan	Agreement requirements of loan with overdue payments lasting from 91 up to 120 calendar days	99	30	0	40	15	25	0	35	35	0	45	99	60	1,5	70
9		Agreement requirements of loan with overdue payments lasting from 121 up to 180 calendar days	99	45	0	50	20	35	0	50	55	0	70	99	80	1,5	90
10		Agreement requirements of loan with overdue payments lasting from 181 up to 270 calendar days	99	60	0	65	40	75	0	75	75	0	90	99	95	1,5	99
11		Agreement requirements of loan with overdue payments lasting from 271 up to 360 calendar days	99	75	60	80	60	75	60	75	95	60	99	99	99	75	99
12		Agreement requirements of loan with overdue payments lasting from 361 calendar days	99	99	99	99	99	99	99	99	99	99	99	99	99	99	99

 

 

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