EBA has decided to go ahead with its plan to phase out its Guidelines on legislative and non-legislative payment moratoria from the end of September. It says the Guidelines have provided the necessary flexibility, and that payment moratoria have been an effective tool to address the short term liquidity challenges caused by the pandemic. They will also continue to show effects for some time. EBA thinks the Guidelines helped banks to manage customer requests but it is no longer appropriate to have such an exceptional measure in place and says banks should return to following a case-by-case approach to rescheduling loans.
