Press Release regarding the Decision on banks’ temporary measures to mitigate the negative economic consequences caused by the COVID-19
Date: 20 March, 2020
Subject: Press Release
Decision on banks’ temporary measures to mitigate the negative economic consequences caused by the COVID-19 viral disease
Bearing in mind the need to preserve and further strengthen the stability and safety of the Republika Srpska banking system in the conditions of risks arising from a new emergency situation in the country, the Banking Agency of Republika Srpska adopted today at an extraordinary session of the Management Board the Decision on banks’ temporary measures to mitigate the negative economic consequences caused by the COVID-19 viral disease.
This Decision stipulates provisional measures to mitigate the negative economic consequences caused by the COVID-19 pandemic viral disease and to safeguard the stability of the Republika Srpska banking sector, where such relate to the granting of relief to bank clients directly or indirectly affected by adverse effects, the specific rules for managing credit risk that banks apply in the case of granting a special measure to a client, and preventive measures aimed at preserving the capital of banks
As stipulated in the Decision, banks may grant clients special measures, such as: a moratorium, i.e. deferral of repayment of principal and interest of the loan, which may last at least until the announcement of the termination of the emergency situation, introduction of grace period for repayment of the principal of credit obligations for a maximum period of 6 months, approving an additional amount of exposure to overcome its current liquidity difficulties, and other measures aimed at facilitating the settlement of the client's credit obligations and maintaining the client's business operations.
The banks will determine the required documentation and method of request submission in accordance with its internal rules, taking into account the need for as little social interactions as possible and the limited movement of individual clients (illness, isolation, etc.).
This Decision shall enter into force on the day following its publication in the “Official Gazette of Republika Srpska”.
Banking Agency of Republika Srpska