What are the implications of the EBA deadline extension for the application of the Guidelines on payment moratoria to 30 September 2020?
23 June 2020
The Guideline published by the European Banking Authority (EBA) on payment moratoria on the 2nd of April 2020 informed on the criteria for the treatment of legislative and non-legislative moratoria. It has been announced at that time that it will apply before 30 June 2020 with the possibility of the extension of the time limit. On 18th of June, EBA decided to extend the application date to 30 September 2020.
The extension was motivated by the fact that EU economies are not yet fully opened and recognize the importance of a continued support to the measures taken by banks to extend loans in response to the extraordinary nature of the situation caused by the COVID-19 pandemic.
This article provides further insight on the implications and requirements.