Restructuring is a complex process

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The word "restructuring" is a borrowing from the English language, it means a change in the structure, order, structure. The term is general, so the processes denoted by this concept can be found in any kind of activity. For example, in Western financial practices there is such a thing as "company restructuring". In this case, the enterprise is restructured under the influence of internal or external factors, since the current state of affairs is recognized as inefficient.

For a company, restructuring is, first of all, an assessment of the current state and setting new goals that will need to be achieved. The initial analysis usually includes an assessment of the activities of the current management, current strategies, tax, legal analysis. Therefore, almost always, a change in the structure of a company affects many more layers than just financial restructuring.

Once the main problems are identified, the experts develop a new strategy and project objectives. At this stage, the possibleachievements, risks, volumes of necessary resources. Sometimes several initiatives are prepared, from which the management and owners choose the best option.

Restructuring is a complex process, the result of which should be an exit of the organization to a fundamentally new level. A somewhat different thing is happening in the vastness of our country in the financial sector. Today, many individuals and legal entities are faced with the fact that they cannot repay loans and interest on them in due time.

Debt restructuring is an agreement between the creditor and the borrower, which is usually supplemented by a number of documents (a copy of the loan agreement, a copy of the passport and work book, a certificate indicating the amounts paid and the amount of debt, extracts from the Unified State Register of Legal Entities). The credit organization checks the solvency of the borrower, and if it is established that it is impossible to pay the loan on the current terms, another scheme of joint work is selected for him.

Most often, financial institutions go for an increase in payment terms, change the payment repayment schedule, change the debt currency (for example, from euro to Russian rubles). In addition, the client may be offered a "credit holiday", when a deferment is given for a certain period in repayment of the principal amount of the payment. However, you should not flatter yourself here, since the bank will still receive the money owed to it, adding them to the total debt after the end of the grace period.

Proposed creditrestructuring structures is not a gift. Almost always, a temporary improvement will result in additional amounts of interest. Therefore, all proposed schemes must be carefully disassembled and calculated independently. Mortgage payers who find themselves in a difficult financial situation can seek advice from ARIZhK (a special agency involved in the restructuring of loans in the mortgage sector), where they can advise on schemes with a stabilization loan or agreement.