Croatian Banks Provide Relief for Repayment of Loans under Covid-19

Following a coordination meeting between the Government and the Croatian Central Bank last week, the representative body of the Croatian banks announced that the banks have unilaterally decided to introduce several measures with a view to providing relief to entrepreneurs/borrowers affected by Covid-19 situation.

The measures are as follows:

• the banks will not initiate enforcement action against natural or legal persons if they fail to pay their obligations in the period of 3 months starting from April 2020;
• the banks will diligently and urgently review and approve customers’ request for the postponement of payment of their obligations for the period of 3 months;
• the interest will accrue during the relief period but there will be no increase in the interest rate (no default on the acceleration interest rate);
• the banks invited other creditors (e.g. utility companies, state institutions, pension funds, etc.) to apply the same or similar approach and grant relief to companies with a view to providing support to the most affected entrepreneurs.

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» Croatia: COVID-19 Labour Law Legal Alert

Following a coordination meeting between the Government and the Croatian Central Bank last week, the representative body of the Croatian banks announced that the banks have unilaterally decided to introduce several measures with a view to providing relief to entrepreneurs/borrowers affected by Covid-19 situation.

The measures are as follows:

• the banks will not initiate enforcement action against natural or legal persons if they fail to pay their obligations in the period of 3 months starting from April 2020;
• the banks will diligently and urgently review and approve customers’ request for the postponement of payment of their obligations for the period of 3 months;
• the interest will accrue during the relief period but there will be no increase in the interest rate (no default on the acceleration interest rate);
• the banks invited other creditors (e.g. utility companies, state institutions, pension funds, etc.) to apply the same or similar approach and grant relief to companies with a view to providing support to the most affected entrepreneurs.