EBA Guidelines on legislative and non-legislative moratoria

The EBA has announced the reactivation of its Guidelines on legislative and non–legislative moratoria on loan repayments applied in the light of the COVID-19 pandemic.

The aim of the Guidelines is to ensure that loans, which had previously not benefitted from payment moratoria, can now also benefit from them. The EBA recognises that it is important for banks to ensure the continued flow of lending to clients.

The revised Guidelines will apply until 31 March 2021, and include additional safeguards against the risk of an undue increase in unrecognised losses on banks’ balance sheet.