Clarification for the public regarding the extension of the loan installment deadline

On Saturday, in many online media of the country, was published the news with the title: “CBK postpones the term of loan installments”.

In order to properly inform the public, the Central Bank of the Republic of Kosovo would like to clarify once again that no new decision has been taken to re-defer the payment of loan installments.

We once again clarify that the decision remains in force that the deadline for postponing the payment of loan installments is 3 months, from March 16 to June 16, 2020, for borrowers who have encountered financial difficulties as a result of declining personal or business income due to Covid 19.

As we have informed earlier, during this period, the lending institutions will not apply punitive interest, will not apply a change of credit classification to borrowers and the CBK will not require additional provisions from these institutions for deferred loans. Meanwhile, the regular interest for these three months will be calculated, the payment of which will be distributed for a period of at least six months or earlier, in cases of maturity of loans before this period.

The CBK requires lending institutions to implement this requirement, in order to facilitate and maintain the liquidity of borrowers during this period of cessation of activity of many economic activities due to pandemics.

The CBK will continue to closely monitor economic developments and those in the financial sector in order to make our further contribution to the recovery of the economy, but always by putting in the foreground the maintenance of financial stability, which is also the primary task of the CBK.