Decision on easing credit obligations includes a moratorium of up to 12 months

The Banking Agency of FBiH at today's session of the Management Board adopted the Decision on temporary measures for the treatment of credit obligations of clients affected by natural disasters, and in order to mitigate the negative effects of natural disasters, and to facilitate the repayment of credit obligations of natural and legal persons from the flood-affected areas, it was announced from the Agency, reports the BH News Agency Patria.

The aforementioned Decision included most of the proposals submitted by the Association of Banks of BiH, which relate to sub-legal acts for which the Agency is competent. The adopted Decision defines the possibility of a moratorium on credit obligations and restructuring of credit obligations. 

In the case of approval and contracting of a moratorium or deferral of payment, the Decision defines the maximum duration of the moratorium up to 12 months (no later than 30.09.2015), as well as the maximum interest rate that the bank can charge for the period of the moratorium. Restructuring of credit obligations means a new claim that replaces the client's existing credit obligations with the bank, which may include extending the repayment period of the principal and/or interest, reducing the interest rate, writing off part of the claim, capitalizing interest, approving new credit funds to repair damages or continue the business process, or other significant changes that ease the client's position.

Also, the Decision defines the minimum documents that the client must submit with the request for approval of a moratorium or restructuring of credit obligations, it was announced, reports Patria.