Members of the Lithuanian Bank Association (LBA) have signed a moratorium on temporary loan holidays for private clients affected by the coronavirus crisis, according to a press release.
By signing the moratorium, creditors pledge to delay property loan repayments by up to a year, and leases or consumer credits by up to six months, without changing the contract terms or interest rates.
“We hope that people will be able to recover and go back to the usual loan repayment timetable,” said the president of LBA, Mantas Zalatorius.
The Lithuanian government previously said it will finance loan holidays for businesses, but the scheme wasn't open to private clients
Read more: Small businesses in Lithuania can start claiming loan holidays
During the loan holidays, people will be exempt from loan repayments, but will still have to cover the monthly interest rates.
All individual clients, who have met their regular repayments, but have been hit with financial difficulties due to the coronavirus crisis by losing their job or part of their income, will need to inform the bank in writing.
Requests by people who had financial difficulties before the nationwide quarantine was introduced on March 16 will be assessed on a case-by-case basis.
The moratorium was signed by Danske Bank A/S branch in Lithuania, Lietuvos Centrinė Kredito Unija (LKU Credit Union Group) and its finance group, Luminor Bank AS branch in Lithuania, UAB Medicinos Bankas, Swedbank AB, AB Šiaulių Bankas.
Lithuania’s central bank has approved the moratorium, which comes into effect on April 20, 2020, and will remain in place until July 1.
The moratorium is open to other market players who are offering credits linked to property, as well as leases and consumer credits.
The full press release by LBA is available here (in Lithuanian).