Banks see no reason to renew deferral of loans program with new restrictions
Banks see no reason to renew the government’s moratorium on deferral of loan repayments following the introduction of further restrictive measures against the spread of coronavirus. This follows from today’s statement of the Czech Banking Association. The Chamber of Commerce called for the moratorium to be renewed on Monday.
Banks anticipate that the government’s anti-epidemic measures may also lead to a deterioration in some of their clients’ financial situation, who may thus have difficulty repaying their loans. “Banks are closely monitoring and evaluating the entire situation of their clients in connection with the end of the moratorium on installments in October. At the moment, we see no reason for the moratorium to be renewed,” said Vladimír Staňura, the association’s chief adviser.
Based on data from banks, most clients return having been repaying the deferred loans without any problems. Staňura claims that they did not even notice the demand for the extension or renewal of the area moratorium on the part of clients. According to Staňura, those who were granted a postponement within the first covid wave in the spring, in the vast majority of cases, declare that they will return to repayment in November.
According to Staňura, banks are ready to help their clients who find themselves with financial problems and offer them tailor-made solutions. However, clients must communicate with their banks promptly. “Individual client assistance is in many cases more effective than general relief and offers many possible tools, whether it is to reduce monthly payments, consolidate or defer payments. However, it is necessary that individual clients in contact their bank as soon as possible,” said the president. Tomas Salomon Association.
As of September 25, banks had received 401,223 requests for deferral of loan repayments. The possibility of postponement ends on October 31, according to Staňura, and at the end of September about a third of the borrowers returned to repay the loans. According to a survey by the association, two-thirds of Czechs do not want to extend the possibility of postponement.