The Central Bank of Montenegro, CBCG, has explained today the manner of the implementation of the Decision on interim measures concerning loan repayments – a moratorium on loan repayments for up to 90 days.
Key things citizens need to know:
- During the moratorium, the banks will not calculate default interest on outstanding loan receivables, they shall not initiate enforcement proceedings or enforced collection;
- Loan beneficiaries who wish to exercise their right to moratorium do not need to come to banks’ branch offices. Citizens can submit a request for the moratorium activation via phone, e-mail or by post;
- Loan beneficiaries who exercised their right to moratorium will continue to repay the loan for a period extended for the duration of the moratorium. Banks will not collect interest receivable during the moratorium, they will calculate it and capitalize it at the end of the moratorium duration.
“A moratorium on loan repayments implies the temporary suspension of all payments of loan obligations (principal, interest, default interest, fees, etc.) for up to 90 days. This means that loan beneficiaries won’t be paying annuities (principal and interest) during the moratorium, whose amount has been defined by the repayment plan which is an integral part of the loan agreement,” the CBCG announced.
All loan beneficiaries who do not need a moratorium at the moment may exercise this right at any future time during the Decision’s validity.
“Citizens who wish to exercise their right to moratorium do not need to visit banks’ branches. They need to submit applications for the moratorium activation electronically, that is, by phone, e-mail, or by post. Banks will publish more detailed guidelines about the manner of submitting applications in the media or on their websites.“
Banks are obliged to act on this request within five working days from the request receipt.
Moreover, banks will not require or charge any administrative costs related to the use of the moratorium. Conditions of loan agreements referring to the repayment period won’t change, as loan beneficiaries will be repaying the loan for a period extended for the duration of the moratorium. In addition, the nominal interest rate remains unchanged in line with the agreement.
The CBCG emphasized that this right refers to all loan beneficiaries, i.e. cash loans (secured and unsecured), housing loans, loans for pensioners, consumer loans, investment loans, loans for working capital, liquidity loans, users of all credit products, including credit cards approved by banks, etc.
