OREANDA-NEWS. November 17, 2009. The scheme is designed to help borrowers finding it hard to make full and timely payments following a change in their circumstances (unemployment, reduced income, etc.), reported the press-centre of Uniastrum Bank.

Restructuring takes the following forms:

Substituting one party for another in respect of the mortgage obligation by means of the borrower transferring the debt to another person;

Arranging for the mortgage loan to be supported by co-borrowers;

Deferring payment for a maximum period of 6 months conditional upon mandatory payments equal to 5% - 20% of the last scheduled payment;

Arranging easier payment terms for up to a year subject to mandatory payments equal to at least 20% of the last scheduled payment;

Reducing the size of fixed installments by extending the loan term (30 years maximum);

Arranging easier payment terms for up to 2 years subject to mandatory monthly interest payments of at least 30% of the fixed monthly interest payable in the month preceding that when the easier terms come into effect;

Reducing the size of monthly installments payable against the principal amount by extending the loan term (9 years maximum as of the disbursement date) or by deferring repayment of the principal.

Deferring repayment of the principal amount for up to 2 years, subject to increasing the interest rate 0.5%. Extending the loan term (9 years maximum as of the disbursement date) is also possible.

Uniastrum Bank’s mortgage portfolio totaled Rb 4.85 bn as of year-start 2009, dipping to Rb 4.11 bn as of October 1, 2010. Over 9M09 more than 15% of debt obligations, amounting to Rb 735 mn, were settled, underscoring the health of the Bank’s mortgage business.

“As a way of ensuring that our clients don’t fall behind on their payments, don’t tarnish their credit history, and don’t create any additional difficulties for the Bank, we offer them the chance to resolve any problems that crop up as simply and painlessly as possible. Hence, then, our restructuring scheme, which is the easiest and most effective way of dealing with such problems for all parties concerned. We are always prepared to accommodate our clients’ wishes and to consider every application on its own merits,” says Anna Romanenko, Head of Uniastrum’s Underwriting and Retail Credit Portfolio Management Division.