Banks Accept Moratorium Applications, Agency to Begin Inspections in September

Banks in FBiH are receiving applications from clients and taking necessary actions to implement the moratorium in accordance with the Decision on temporary measures for the treatment of credit obligations of clients affected by natural disasters, the FBiH Banking Agency told the BH news agency Patria.

- It is evident that banks are interested and have already proactively done a lot to help the population endangered by the floods. We note that all clients who wish to exercise their right to a moratorium must first submit an application, based on which the bank can proceed – the Agency states.

The Agency will have more information on the number of approved moratoriums after conducting inspections scheduled to begin next month.

The floods that affected a large part of BiH during May and August also caused significant damage to residential and commercial buildings. Given that a large number of people are indebted and their properties and means of work have been destroyed, the FBiH Banking Agency adopted the Decision on temporary measures for the treatment of credit obligations of clients affected by natural disasters on June 30, 2014, with the aim of mitigating the negative effects of natural disasters and facilitating the repayment of credit obligations of natural and legal persons from flood-affected areas. The Decision defined the maximum duration of the moratorium up to 12 months (no later than September 30, 2015), as well as the maximum interest rate that a bank can charge during the moratorium period, writes Patria.