On Nov. 19, 2024, RUS CB issued ord 6875-U on the formation of reserves for potential loan losses by credit consumer cooperatives in force Oct. 1, 2025.
Except for para 5 art 5 of the ordinance which enters into force on Jan. 1, 2027.
On Jul. 3, RUS CB proposed rules on potential loan losses reserves.
RUS CB proposed ordinance on the formation of reserves for potential loan losses by credit consumer cooperatives.
Consultation documents are only available on RUS CB website until comment deadline.
Summary
The ordinance aims to improve the procedure for forming reserves for potential loan losses (RPLLs) by credit consumer cooperatives (CCCs) and is prepared per law 190-FZon credit cooperatives granting the RUS CB the authority to establish this procedure.
The ordinance mandates CCCs to form RPLLs for acquired loan agreements and expands the list of circumstances requiring CCCs to form RPLLs.
Introduces a special category for loans to SMEs and self-employed individuals with lower RPLL values and requires CCCs to form RPLLs for loans provided by CCCs.
The ordinance establishes additional RPLLs if the borrower is declared insolvent (bankrupt) or is undergoing bankruptcy or liquidation, lacks documentation proving the loan agreement, fails to pay contributions on time, or restructures the loan.
Effectiveness
The ord is expected to enter into force on Oct. 1, 2025 and comments and feedback are expected by Jul. 16, 2024.
Nov. 2024 Ord Issued
On Nov. 19, 2024, RUS CB issued ord 6875-U on the formation of reserves for potential loan losses by credit consumer cooperatives in force Oct. 1, 2025.
Except for para 5 art 5 of the ordinance which enters into force on Jan. 1, 2027.
Regulators
RUS CB
Entity Types
Bank; CNSM; CU
Reference
PR 11/19/2024; Ord 6875-U, 9/30/2024; CP, 7/3/2024
