Given the recent outbreak of COVID-19 and the declaration of a state of emergency in Serbia, the National Bank of Serbia has decided to introduce a moratorium on loans and leasing, in order to help its citizens as well as domestic economy, in these difficult times.
In the sense of moratorium, the National Bank of Serbia decided to suspend repayment of loans and leasing, as well as all other obligations to business banks and leasing companies. Business banks and leasing companies were obliged to offer a moratorium on debt payments to their clients (both, individuals and business clients) until 21 March 2020 by posting a notification of such offer on their websites. Within ten days following the notification, borrowers/lessees can refuse the offer, and if they fail to do so within the term of 10 days, it shall be considered that they have accepted the offer. Borrowers repaying more loans are entitled to a moratorium on the repayment of instalments for all loans.
In order to simplify the application of the moratorium as much as possible, National Bank of Serbia has decided to introduce an automatic moratorium offer mechanism, meaning that even if one continues to repay its loan(s) but it did not refuse the offer, the first time that he/she fails to pay in time, the moratorium shall automatically apply.
It is also important to note that the extension period shall last for a period of at least 90 days although every business bank/leasing company is authorized to offer an even longer period to its clients. Please also bear in mind that during the state of emergency declared due to pandemic, the banks will not charge any default interest on past due outstanding receivables.
This kind of National Bank’s interventionism is only one of the measures adopted in order to preserve both the individuals and businesses in these demanding times.