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Serbia: Moratorium on loan, lease payments (COVID-19)

Serbia: Moratorium on loan, lease payments (COVID-19)

The National Bank of Serbia in late July 2020 issued decisions establishing a moratorium to postpone loan and lease payments obligations as relief for borrowers and lessees in an aim to mitigate the economic effects of the coronavirus (COVID-19) pandemic.

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The guidance provides temporary measures requiring banks and lessors to offer borrowers and lessees more time for loan or lease repayments.

During the period of the moratorium, banks and lessors are not to charge default interest on debts due during that period and are not to initiate enforcement proceeding or collection. Default interest on debts due before the moratorium may be charged, but after the moratorium expires the calculated default interest is to be evenly distributed over the debt repayment period and is not to be added to the debt principal. During the moratorium, banks and lessors are only to charge agreed interest on the principal which is not due, but may charge agreed interest even on the amount of principal which is due during the moratorium. The agreed interest calculated during the moratorium is to be evenly distributed over the debt repayment period upon termination of the moratorium and will not be added to the debt principal.

Read a July 2020 report prepared by the KPMG member firm in Serbia

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