Insider Economy Cyprus going through loan moratorium on privileged terms

Cyprus going through loan moratorium on privileged terms

Cypriots are among Europe’s privileged borrowers, Phileleftheros’ Insider reports, as they are entitled to nine months of suspension of loan payments (principal as well as interest) that was also enshrined into law, a benefit not enjoyed by many other member-states.

According to data gathered by the portal, loan suspension in the Cypriot banking system covers all categories of borrowers and loans, while many European banking systems exclude principal payments from their support package and only assist with interest. Moreover, in some countries, there is no law holding banks accountable but it is instead left to banks’ goodwill to help.

In the aftermath of the Coronavirus blow to the real economy, nearly all European banking systems have put relaxations in place for the repayment of loans.

Austria has upheld a law that suspends payments of principal but not interest for three months.

Similarly, borrowers in Belgium are entitled to a moratorium on principal payments for six months while continuing to pay the interest.

The Czech Republic allows borrowers by law to select a suspension on principal payments for a period between three and six months and the relevant applications cannot be submitted after October 31, 2020. Like with Austria and Belgium, interest payments are excluded from the arrangement.

In Estonia there is no law backing loan moratoriums but borrowers have the option to suspend principal payments from six to 12 months and must continue paying the interest.

Similarly in Finland, no law has been put in place for loan payment suspensions but borrowers have the option to halt payments from three to 12 months and only pay the interest.

France has a six-month loan moratorium in place, Germany for three months with the relevant legislation in place.

In Greece the moratorium is for three months and concerns those who have joined the scheme of primary home protection or the mechanism for the out-of-court arrangement of business debt. However, the government’s decision will only apply to natural persons entitled to an 800 euro emergency allowance as well as businesses adversely hit by the pandemic lockout.

Borrowers in Hungary are also among the privileged with a law in place that enforces the freezing of both principal and interest payments until the end of the year.

Ireland’s moratorium lasts from three to six months but there is no legislation in place.

In Italy loan payment suspensions are enshrined into law and last from six to 18 months depending on the type of loan.

Latvia’s banking system allows for moratoriums lasting from six to 12 months as per the loan category but no law is in place.

Lithuania too has no relevant legislation but allows for a suspension of principal payments only from six to 12 months.

The loan moratorium in Portugal will be in place until September 30, while in Spain it lasts from three to six months and in certain cases it can go up to 12 months.

Top Stories

Weddings with 350 guests from August 22; new relaxations announced

  Citing the very good epidemiological situation as regards the coronavirus outbreak, the government has announced further easing of restrictive measures, increasing the maximum number...

T/Cypriot police shoot, injure two irregular migrants

    Turkish Cypriot police shot and injured two irregular migrants who tried to avoid arrest, the online edition of the Turkish Cypriot newspaper Yeniduzen reports. It...

Turkish verdict paving way for Hagia Sophia mosque expected Friday – officials

    A Turkish court is likely to announce on Friday that the 1934 conversion of Istanbul's Hagia Sophia into a museum was unlawful, two Turkish...

More credit card use for small purchases amid pandemic

  Kiosks and newsagents saw a 103% increase in credit card transactions, while travel related business recorded a 91% decrease in the quarter ending June...

Tried and Tasted: Bistro 961

The wonderful, aromatic flavours of the Middle East are an eternally welcome guest in my stomach. So when I found out that a sweet...

Taste

How to make triandafillo ice cream, by UK Cypriot chef Loulla Astin

  Just in time for the scorching heat, UK Cypriot chef Loulla Astin has shared her recipe for refreshing triantafillo ice cream -- or as...

Cyprus sprouts with cream and prosciutto

In a big, deep frying pan, fry the prosciutto in the olive oil, on medium heat for 2 minutes. Add the onion and garlic...

Pork burger with sundried tomatoes, mozzarella and anchovies

Mix all the ingredients together with the mince in a bowl, and combine well. Divide into 4 balls and form the burgers. Warm a griddle/pan...

Sheftalies

Wash the lamb cauls with plenty of cold water and let them settle in water and vinegar for a little while. Soak the bread crumbs...