National Bank of Serbia Prescribes Temporary Suspension of Loan Payments | Beta Briefing

National Bank of Serbia Prescribes Temporary Suspension of Loan Payments

Source: Beta
Archive / SEE Business | 24.03.20 | access_time 10:12

National bank(BETAPHOTO/NENAD PETROVIC) of Serbia

On March 17, the National Bank of Serbia issued a statement saying that its executive board had passed two decisions that placed a moratorium on loan payments by businesses and citizens, which is possible while the country is in a state of emergency due to the coronavirus pandemic. 

The bank’s decision on temporary measures for preserving the stability of the financial system and another decision on temporary measures for providers of leasing services were adopted to preserve the stability of the country’s financial system, bearing in mind the necessity to preserve the existing level, and further bolstering the financial system in conditions of potential risks caused by the health emergency in the country. 

“Financial stability is essential in both regular and especially irregular circumstances in the country. In coordination with other state organs, the central bank is taking and will take all measures to preserve stability during the emergency, to help the position of Serbian citizens and the economy. 

Awareness of the need to behave responsibility on the part of all market participants is invaluable at this sensitive time for overcoming the difficulties that we might face,” the central bank governor, Jorgovanka Tabakovic, said. 

The aforementioned moratorium is prescribed for all debtors who want it (private citizens, farmers and businesses), and it will defer debt payments by no less than 90 days i.e. the duration of the state of emergency that has been declared because of the pandemic. 

During this time, debtors will not have the obligation of servicing their debts stemming from loans or leasing. Debtors will also be allowed to service their debts during the moratorium.

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