EBA leaves its guidelines unchanged for loan moratoria

By Tyler Davies
19 Jun 2020

The European Banking Authority will carry on guiding banks to apply favourable treatment to loans covered by payment holidays, though it recognises that liquidity issues facing companies during the Covid-19 pandemic could soon turn into solvency issues.

The EBA said this week that it would be extending the legal application of its latest guidelines on loan moratoria for another three months, until September 30.

The guidelines effectively establish a favourable treatment for loans that are subject to legislative or industry-led payment holidays, which have ...

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