The Bulgarian National Bank said on Friday that it has endorsed the proposal of the association of local banks for a loan payment moratorium, in order to mitigate the impact of the coronavirus crisis on borrowers.
The proposed mechanisms include a six-month postponement of loan principal and interest payments, a six-month postponement of principal payments only, and a mechanism for revolving loan facilities, the central bank said in a statement.
Only borrowers who are no more than 90 days past due by March 1 can benefit from the mechanisms. They need to state explicitly their willingness to use the loan payment relief measures.
The moratorium is in line with the European Banking Authority (EBA) guidelines on the matter published earlier this month.
“The EBA sees the payment moratoria as effective tools to address short-term liquidity difficulties caused by the limited or suspended operation of many businesses and individuals resulting from the impact of COVID-19,” the EU banking authority said on April 2.