close
Share with your friends

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.

1000

Related content

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

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal