Nine-month extension of bank loan moratorium announced

Individuals, businesses and households who are able to show they have been negatively affected by the pandemic can make use of the scheme 

A moratorium on bank loan repayments by borrowers affected by the COVID-19 pandemic has been extended by a further nine months. 

In a legal notice published on Thursday, borrowers looking to make use of the scheme have until 31 March to apply for the extension. 

The scheme applies to credit facilities sanctioned before 1 March 2020. Individuals, businesses and households who are able to show they have been negatively affected by the pandemic can apply for the scheme. 

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

READ ALSO: Slight decline on COVID-19 loan moratoria

On the other hand, borrowers who have benefitted, or are benefitting, from a moratorium shorter than nine months can apply for an extension so that the duration of their existing moratorium would be extended to cover a moratoria period of no more than nine months in total.

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

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

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

Customers will also have the chance to choose between paying just the interest of their loan, or foregoing all payments. 

READ ALSO: Fewer household loans subject to moratorium but hotels, restaurants remain worst hit

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