The National Bank of Serbia has adopted new measures that make it easier for citizens, whose incomes have been below the national average in the last three months, to repay loans to a bank or financial leasing provider.
It also prescribed the conditions under which banks and financial leasing providers are obliged to facilitate the repayment of obligations to other debtors – farmers, entrepreneurs, companies, which have fallen into financial difficulties due to the pandemic.
The NBS prescribes an obligation for banks and financial leasing providers to grant a relief to the debtor, who due to the circumstances caused by the pandemic is unable to settle its obligations, or who may have difficulties in settling those obligations.
Who is entitled to benefits?
The NBS estimated that the need for relief is especially for unemployed persons, debtors whose average net monthly income in the last three months is below the average salary in Serbia, as well as debtors with average net monthly income in the last three months up to 1000 euros, whose net monthly income is lower by 10 percent or more in relation to the income before March 15, 2020 and whose degree of credit indebtedness, ie the burden of monthly income with credit and other obligations is above 40 percent of that income.
For farmers, entrepreneurs and companies, it is estimated that relief in repayment of liabilities should be offered especially to debtors who in 2020 had a decline in operating income, ie turnover of at least 15 percent compared to 2019, or there was an interruption of the debtor’s business continuously.
Also, debtors who are in arrears for more than 30 days in a materially significant amount on the basis of any obligation to which the decision applies will have the right to the stated reliefs.
In addition to the above, banks and lessors of financial leasing are given the opportunity to grant relief to the debtor at the reasoned request of the debtor, if due to other facts and circumstances they assess that the financial position has deteriorated and it is impossible to settle the debtor’s obligations.
What benefits are in question?
The reliefs provided by the decisions refer to the reprogramming and refinancing of loans and liabilities from financial leasing, with the approval of a grace period of six months and the appropriate extension of the repayment period so that the debtor’s monthly obligations do not exceed those from the repayment plan. During the grace period, the bank calculates the interest, whereby the debtor, in the request, decides whether to pay interest during the grace period or after its expiration.
Other credit products, credit card and allowed overdraft, may be covered by reliefs in accordance with this decision, by granting a loan to refinance obligations based on these products with a grace period of six months, and an agreed monthly repayment with a repayment period extends in such a way that the monthly obligations are not higher than the monthly obligations that the debtor would otherwise pay for that product.
The NBS especially points out that banks, ie financial leasing providers cannot charge a fee for measures and activities taken in accordance with the decisions, as well as costs they may have in connection with these measures and activities, including costs for processing client requests, except for necessary costs for the approval of receivables, which are not determined by the bank or financial leasing providers (eg credit bureau or real estate cadastre).
Banks are obliged to inform debtors on their website
In accordance with the decisions, banks and financial leasing providers will publish a notice on their website and in their branches no later than December 22, 2020, informing debtors about the possibilities of applying for relief, as well as the conditions that the debtor should meets.
All debtors who meet the prescribed conditions can submit a request to the bank / financial leasing company for benefits by e-mail or post office, as well as in business premises until April 30, 2021, with the NBS advising debtors to give preference to e-mail communication due to the current epidemiological situation.
The bank, ie the lessor of financial leasing is obliged to decide on the request of the debtor and inform the debtor about that decision within 30 days from the day of receipt of the request.
The decisions made come into force today, and the debtors are able to submit a request for obtaining the stated relief as of tomorrow (Wednesday), regardless of the notification of the banks / lessors, 021 reports.
