The Central Bank recommended that banks provide credit holidays to mobilized

Mobilized citizens, as well as their dependent relatives, can apply to their bank or microfinance organization (MFI) for a deferral of payments or a reduction in their size for all types of loans and credits, including mortgages, for the period of mobilization. This is stated in the message of the Central Bank. Now credit holidays can be issued only with a noticeable decrease in income and only for six months.

“The regulator recommended that banks, MFIs and other professional lenders meet the needs of such borrowers and develop special loan holiday and restructuring programs or adapt existing ones. It is also recommended not to accrue forfeits (fines and penalties) under contracts, not to demand early fulfillment of obligations, to suspend the collection of overdue debts or mortgage housing, not to evict from mortgage housing that were previously foreclosed. A similar right is granted to close relatives of such borrowers if they are dependent on them, ”the press service of the Central Bank said.

The regulator also noted that banks, MFOs and credit bureaus should not consider restructuring data as worsening the borrower’s credit history.

The Central Bank did not rule out that in the future such special credit holidays could be legally fixed.

Leave a Reply

Your email address will not be published.

Back to top button