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On April 27, 2026, the Bank of Russia announced a revised approach to provisioning for loans issued for apartment construction projects, designed to enhance risk sensitivity in banks' assessment methodologies. The new framework will apply to loans issued at any stage of project implementation, spanning from the acquisition of land rights and approval of housing development parameters through to the sale of apartments in completed buildings. Under this approach, banks will assess risk by considering the project life cycle stages, with particular emphasis on compliance with deadlines for urban planning and project documentation approval, construction timelines, sales schedules, and debt repayment obligations. The framework will also account for instalment plans offered by developers to shared construction participants. The Bank of Russia designed this system to enable comprehensive evaluation of factors determining construction project success and project loan repayment capacity. By incorporating multiple project lifecycle variables, the framework aims to provide a more nuanced and accurate risk assessment than previous methodologies. The updated provisioning approach will become effective on October 1, 2027. The framework will apply mandatorily to loan tranches issued for projects where construction has not yet commenced, as well as to loans issued after the ordinance comes into force. Banks operating in the Russian market will need to align their provisioning practices with these requirements by the effective date. REFERENCES: Bank of Russia. "Provisioning for loans issued for apartment construction projects: new approach to risk assessment." April 27, 2026. Available at: www.cbr.ru