Russia wants to write off loan debts for those who go to war

Russia has come up with a new way to recruit people for the war. Those who are ready to go to the battlefield are offered loan debt relief of up to 10 million roubles (roughly US$99,500).

Source: The Moscow Times, citing the corresponding draft law, which the State Duma (Russian Parliament) is scheduled to consider on 19 November

Details: The document was reportedly adopted in the first reading on 29 October.

According to the text of the draft law, it is proposed that debts for those who sign a contract with the Russian Ministry of Defence after 1 December 2024 be written off.

However, this applies only to those loans for which there is a court decision on debt collection or enforcement proceedings that were opened no later than 1 December 2024. Loan debts can be written off both for the war veterans themselves and their relatives.

The draft law also provides for an increase in the period of suspension of the borrower's obligations. The initial proposal was to calculate it based on the length of service plus 30 days of grace. However, the MPs propose to increase the additional period to 180 days.

The Federal Bailiff Service of the Russian Federation reported that in the first nine months of 2024, lenders demanded RUB 1.41 trillion (US$14.1 billion) to be recovered from borrowers, up 34.2% on the same period last year. In January to September, 10.9 million new enforcement proceedings were opened to recover debts from citizens, up 11.6% year-on-year.

In total, bailiffs had 24.4 million  cases against individuals, worth RUB 3.37 trillion (US$33.7 billion), under enforcement.

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