Bank of Russia Announces Risk-Sensitive Provisioning for Construction Loans Effective October 2027
Summary
The Bank of Russia announced a new risk-sensitive approach to provisioning for loans issued for apartment construction projects, covering all stages from land acquisition through apartment sales and debt repayment. The updated approach will consider project lifecycle stages, compliance with urban planning and project documentation deadlines, construction timelines, sales performance, and developer instalment plans provided to shared construction participants. The new system is scheduled to become effective on 1 October 2027 and will apply to loan tranches issued for projects not yet begun construction and loans issued after the ordinance takes force.
“The updated approach is scheduled to become effective on 1 October 2027 and will be mandatory with respect to loan tranches issued for projects whose construction has not yet begun as well as loans that will be issued after the related ordinance comes into force.”
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GovPing monitors Bank of Russia EN for new banking & finance regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 7 changes logged to date.
What changed
The Bank of Russia is introducing a new risk-sensitive approach to provisioning for construction loans, replacing the existing methodology with a system that evaluates loans at every stage of a project's lifecycle. Banks will be required to assess compliance with deadlines for urban planning documentation, construction, sales, and debt repayment, as well as developer instalment plans for shared construction participants.
Affected financial institutions should prepare for the October 2027 implementation date by reviewing current provisioning methodologies for construction finance and assessing necessary updates to risk assessment frameworks. The requirement applies to all loan tranches for projects not yet commenced and all new loans issued after the ordinance effective date.
Archived snapshot
Apr 27, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Provisioning for loans issued for apartment construction projects: new approach to risk assessment
27 April 2026 News Share VKontakte WhatsApp Telegram The Bank of Russia will change banks’ approach to creating provisions for loans issued for the construction of apartment buildings, making it more risk-sensitive. The new approach will apply to loans issued at any stage of project implementation – from acquiring rights to a land plot and approving housing development parameters to selling apartments in a finished building.
As part of risk assessment, banks will take into account the stages of a project’s life cycle, while focusing on compliance with the deadlines for approving urban planning and project documentation, construction, sales and debt repayment, as well as instalment plans provided by developers to shared construction participants.
Therefore, the new risk assessment system will enable a comprehensive consideration of the factors determining the success of a construction project and the repayment of a project loan.
The updated approach is scheduled to become effective on 1 October 2027 and will be mandatory with respect to loan tranches issued for projects whose construction has not yet begun as well as loans that will be issued after the related ordinance comes into force.
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