Amendments to Slovenian Mandatory Moratorium on Bank Loans
Amendments to Slovenian Mandatory Moratorium on Bank Loans
Author: Mia Kalas, SELIH & PARTNERJI Law Firm
SELIH & PARTNERJI Law Firm has previously reported on the Slovenian emergency law concerning mandatory moratoriums on bank loans (Zakon o interventnem ukrepu odloga plačila obveznosti kreditojemalcev, the “ZIUOPOK”).
On 2 April 2020, the Slovenian Parliament adopted the so-called Mega COVID-19 Law which amends the ZIUOPOK and introduces certain additional measures concerning enforcement and bankruptcy procedures which are important for creditors and debtors. The Mega COVID-19 law will enter into force on the next day after publication in the Official Gazette of the Republic of Slovenia and will apply retroactively since 13 March 2020.
The amendment to the ZIUOPOK explicitly provides that also maturity of all security agreements shall be prolonged (together with maturity of the loan). It further clarifies that interest shall be charged during the moratorium at the interest rate which was agreed upon conclusion of the loan agreement. The Mega COVID-19 Law also introduces a mechanism of state sureties for certain parts of the loans which will be prolonged under ZIUOPOK.
Other measures under the Mega COVID-19 Law which materially affect (also other) debtor-creditor relationships include, among others, a stay on already commenced enforcement procedures, exclusion of certain payments received by individuals under the COVID-19 related measures from enforcement and personal bankruptcy estate, an additional insolvency presumption, a stay on management’s obligation to file for insolvency and a prolongation of a possible suspension on deciding on a creditor’s application for commencement of bankruptcy proceedings.
The Mega COVID-19 Law also regulates certain specifics of moratorium of credit and other liabilities concluded on the basis of the Act Governing Rescue and Restructuring Aid for Companies and Cooperatives in Difficulty (in connection with the Public Finance Act).
A summary of all information available so far, highlighting the updates, is available here.
Author: Mia Kalas, SELIH & PARTNERJI Law Firm
SELIH & PARTNERJI Law Firm has previously reported on the Slovenian emergency law concerning mandatory moratoriums on bank loans (Zakon o interventnem ukrepu odloga plačila obveznosti kreditojemalcev, the “ZIUOPOK”).
On 2 April 2020, the Slovenian Parliament adopted the so-called Mega COVID-19 Law which amends the ZIUOPOK and introduces certain additional measures concerning enforcement and bankruptcy procedures which are important for creditors and debtors. The Mega COVID-19 law will enter into force on the next day after publication in the Official Gazette of the Republic of Slovenia and will apply retroactively since 13 March 2020.
The amendment to the ZIUOPOK explicitly provides that also maturity of all security agreements shall be prolonged (together with maturity of the loan). It further clarifies that interest shall be charged during the moratorium at the interest rate which was agreed upon conclusion of the loan agreement. The Mega COVID-19 Law also introduces a mechanism of state sureties for certain parts of the loans which will be prolonged under ZIUOPOK.
Other measures under the Mega COVID-19 Law which materially affect (also other) debtor-creditor relationships include, among others, a stay on already commenced enforcement procedures, exclusion of certain payments received by individuals under the COVID-19 related measures from enforcement and personal bankruptcy estate, an additional insolvency presumption, a stay on management’s obligation to file for insolvency and a prolongation of a possible suspension on deciding on a creditor’s application for commencement of bankruptcy proceedings.
The Mega COVID-19 Law also regulates certain specifics of moratorium of credit and other liabilities concluded on the basis of the Act Governing Rescue and Restructuring Aid for Companies and Cooperatives in Difficulty (in connection with the Public Finance Act).
A summary of all information available so far, highlighting the updates, is available here.
