Clarification for borrowers following the adoption of the Emergency Deferral of Borrowers’ Liabilities Act
The Bank of Slovenia has been actively involved in dealing with the challenges currently facing businesses and individuals alike as the spread of coronavirus has hit. One of the solutions is the Emergency Deferral of Borrowers’ Liabilities Act, which was adopted by the National Assembly last week but is yet to be published in the Official Gazette of the Republic of Slovenia. The law provides for the deferral of credit liabilities for firms, sole traders, cooperatives, farmers and also other individuals (fair copy). It provides for a systemic solution at the national level.
Loan restructuring, which to date has been an option available by agreement between banks and borrower, is thus made mandatory by the law. Banks will have to allow all those in difficulty caused by the outbreak of the crisis to defer their repayments. According to the Bank of Slovenia, for businesses and households this has removed the uncertainty of how they will handle the potential inability to repay loans in these very particular circumstances.
Those who are already facing or will face difficulties in repaying debt because of the outbreak of the crisis should therefore contact their creditor bank. The Bank of Slovenia can reiterate that it is your health and the health of bank staff that is the number one concern. There will be plenty of time in the months ahead to make all the necessary arrangements; it is also worth checking the online options provided by your bank.