European Banking Authority Phases Out COVID-19 Guidelines on Loan Repayments Moratoria
09/21/2020The European Banking Authority has confirmed that it will phase out its Guidelines on legislative and non-legislative payment moratoria in accordance with its September 30, 2020 deadline. The EBA originally published the Guidelines in April 2020, stipulating that, for a period of three months, banks should not class payment moratoria that were based on national law or private-sector initiatives as forbearance or distressed restructuring practices, in light of the COVID-19 pandemic. The Guidelines were extended for a further three months on June 30, 2020 but the EBA now intends to comply with the September 30, 2020 phase out deadline in light of the success of the temporary moratoria and the need to return to the usual rescheduling of loans on a case-by-case approach. The treatment described in the Guidelines will continue to apply to payment holidays granted prior to September 30, 2020.
View the EBA's statement on the phase-out of its Guidelines.
View details of the EBA's Guidelines.
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