Head of the Department of Compulsory Collection and Bankruptcy of Sberbank Evgeniy Akimov on changing the approach of banks to borrowers

The head of the enforcement and bankruptcy department of Sberbank told Kommersant about the global trend for the protection of debtors, the request for justice and the change in the approach of banks to borrowers. Evgeny Akimov.

— Over the past year and a half, the Supreme Court (SC) has made a number of decisions in bankruptcy cases of citizens that look more like support for debtors than for creditors. Have you noticed a trend and what is it related to?

— This trend is observed not only in the Supreme Court, but in principle in the courts. In Russia, the reasons are partly explained by the legacy of the USSR – there remains a tendency to additionally protect citizens in their disputes with organizations. Just look at the norms of civil procedural legislation, which simplify the rules for conducting court cases for individuals. Therefore, we can agree that the trend exists; it is not a new phenomenon and is inherent in many modern legal systems. Unless citizens are obviously unscrupulous, states try to protect and support them. We see similar trends, for example, in the UK and New Zealand. The World Bank has long recommended simplifying the procedure for writing off small debts for people without property.

— Is the trend expressed specifically in approaches to bankruptcy?

– Not only. We are talking about the protection of individual debtors, and not just those who are declared bankrupt. In the Russian Federation in recent years, many initiatives have been aimed at protecting citizens in difficult financial situations. This includes the law on leaving the debtor a minimum living wage, which the bailiffs cannot take away, and the laws on credit holidays. Sberbank also wants to work within the framework of the new philosophy.

– What is it?

— If the borrower’s situation is difficult, the bank will first find out the situation and try to help and offer a mutually beneficial solution. For example, there is a comprehensive settlement program, where we help to obtain restructuring in all banks where a person has debts at once. We can advise you on how to better manage your personal finances. Because our task is not to make things worse.

But, unfortunately, most citizens begin bankruptcy proceedings on the advice of incomprehensible consultants and “debtor debtors” who are not interested in helping the debtor, but in making money from him. The average price tag for such services for a borrower is about 150–200 thousand rubles. Moreover, these consultants do not even tell him about the out-of-court bankruptcy procedure, which is free.

— What categories of debtor citizens can count on a loyal attitude?

— The modern understanding of consumer bankruptcy is based on the fact that first of all, poor debtors (they have neither earnings nor assets) and the poor (little income and assets) can count on forgiveness in court, provided that they are not seen to have acted in bad faith in creditors’ address. Also, the courts usually provide support to socially vulnerable segments of the population: the disabled, the elderly, those living on benefits, etc. The court exists to understand borderline situations, because the law cannot regulate everything; there are always exceptions. For this purpose, practice is being developed to ensure both a balance of interests and some kind of justice.

— Has the demand for justice increased now?

— Due to increased public awareness, the number of bankruptcy procedures for citizens has increased, the vast majority of which are initiated by the debtors themselves. And as the total number of procedures increases, the number of unique cases that require a careful approach on the part of judges also increases.

— So the loyal attitude of the courts towards citizens is justified?

— On the one hand, yes, we need to free people from the unbearable debt burden. On the other hand, it is impossible to discourage borrowers, because this leads to too easy an attitude towards credit money, violation of payment discipline and non-compliance with the basic principle known to us from Roman law. Pacta sunt servanda – obligations must be fulfilled.

— Can forgiveness of loan debts to citizens negatively affect the banking system?

— When 12 years ago, World Bank experts discussed the trend towards an all-forgiving approach (the ability to quickly write off debts if an individual has no obvious bad faith and no assets), they wondered how this would affect the global economy. There were options for both positive and negative consequences. That is, it is unknown what will happen to the economy if debt writing off occurs constantly and en masse. But so far no disaster has occurred. Court decisions regarding individual debtors have little impact on the general state of affairs, since most citizens conscientiously fulfill their loan obligations. This allows banks and the entire financial system to cope with the risk of non-repayment for some borrowers while their share is sufficiently low.

Interviewed by Anna Zanina