EBA clarifies guidance on loans under moratoria

Coronavirus_euros_Adobe_575x375_030420
By Tyler Davies
03 Apr 2020

The European Banking Authority has made it clear when loans subject to Covid-19 moratoria should be classified as forborne exposures or distressed restructurings, following calls from the industry for further guidance in this area.

The EBA published the new comments on Thursday evening.

It had already sought to reassure banks that loans under public and private moratoria during the coronavirus pandemic should be treated differently to loans under regular forbearance measures, through a statement issued on March 25.

But ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial