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Febelfin, the Belgian financial sector federation, and the Minister of Finance agreed on a new moratorium, outside the statute, on the repayment of credits granted to businesses. A further payment deferral is thus granted to businesses in difficulty because of the Covid-19 crisis. It became possible to request a deferral of the instalments provided in the credit agreements until 30 June 2021. Businesses may not, however, benefit from a total deferral exceeding 9 months (the deferrals under the first and second Charters, taken together, may not exceed 9 months).
What does the business-credit deferral cover?
The deferral allows businesses in difficulty to suspend the repayment of the principal of their credit. Interest must therefore still be paid, notwithstanding the deferral. The maturity of the credit is consequently postponed by a period equal to the deferral granted.
Which business credits are covered?
Cash credits, credits with a fixed amortisation plan, and fixed advances. The credits for which a deferral is sought must, moreover, not have been granted before 1 August 2020.
Conditions
The conditions remain the same as those of the first Charter.
When can the request be made?
Any deferral request must be made in good time and at the latest 10 days before the credit’s due date, and no later than 31 March 2021. In all cases, the deferral is granted only for future instalments (not overdue ones) until the end of June 2021. Businesses must apply to their bank through the channels it provides (an appointment or an online form). The bank will ask the business for any document showing that it meets the conditions.
And individuals?
Individuals facing financial difficulties may again request a deferral of the capital and interest of their mortgage credit, for a maximum of 3 months, to be requested before the end of March 2021 (running until the end of June 2021 at the latest). Interest due during the deferral is settled afterwards. The financial sector again pays particular attention to those hardest hit: borrowers living on less than EUR 1,700 net per month may obtain a deferral without paying interest on it, the banks bearing that cost. Other measures also exist for consumer credit.
This article is a translation. Only the French version is authoritative. It is provided for information purposes and does not constitute legal advice.
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