Bank loan moratorium to be extended to up to nine months

The moratorium on loan repayments by businesses, households, and individuals negatively impacted by the COVID-19 pandemic has been extended to up to nine months, the Government announced in a legal notice published on Thursday.

To benefit from the scheme, borrowers must apply for the extension until 31st March and show evidence of the repercussions they faced by the global crisis.

To be eligible, the loan must have been sanctioned before 1st March 2020.

Borrowers who are applying for a moratorium on a bank loan which was never subject to a moratorium are entitled to a moratorium of up to nine months.

Meanwhile, applicants who have benefitted, or are benefitting, from a moratorium shorter than nine months, can apply for an extension extending their existing moratorium to a period totalling no more than nine months.

Loans already benefiting from a moratorium period of more than nine months will not be eligible for a further extension.

Under the previous scheme, creditors could not penalise borrowers for not repaying on time by imposing extra administrative fees.

Creditors have the right to refuse a moratorium unless presented with undeniable evidence that the borrower has COVID-19 related difficulties.

Customers will also be able to decide whether to pay only the interest on their loan or forego all payments entirely.