Financial and business news from Bulgaria

Raiffeisenbank supports its clients in the time of a pandemic with the opportunity to renegotiate their loans

Customers can benefit from a grace period during which they do not pay the principal and interest, or only the principal of the loan, for a period of 6 months. The outstanding amounts for this period are paid in parts after the expiration of the deferral, with the term of the loan increasing with the period of deferral.
Any client who has or expects to have difficulties in connection with the pandemic can apply for such a period of grace and has also regularly repaid their loan or has been in arrears for no more than 90 days as of March 1 2020. Since the grace period is linked to the pandemic, as are the requirements of the European Banking Authority, the deferral of credit contributions is applicable to arrears beyond 1 February 2020.

If customer arrears cannot be contacted by the COVID-19 pandemic alone or the days in arrears are not in line with the bank's policy, the case will be dealt with individually and the bank may propose another solution.



To take advantage of the grace period, customers must submit an application, which they can find on the bank's website. They have time to assess whether they need easing the terms of their credit obligations and submit their request from publication of the notice by June 22, 2020.

The grace period will apply once for 6 months, but not later than the end of the year. The customer has the option to waive the granted grace period at any time by renegotiating his/her payment scheme in the event that his/her options for servicing credit obligations improve.

The grace period can be requested for loans to individuals — consumer and mortgage, credit card obligations, financial leasing. For legal entities, the grace period may be requested for fixed-term loans (investment and working capital), revolving loans, overdrafts and credit card obligations, as well as financial leases. No renegotiation fee will be charged on any of the said loans for those borrowers who meet the conditions of the moratorium.

The Facility for Customer Relief during the COVID-19 pandemic is in line with the requirements of BNB and the European Banking Authority and has been prepared within the Association of Banks in Bulgaria. It applies to loans withdrawn before 31 March 2020, while new loans will apply to Raiffeisenbank terms, which are already in line with the current situation.

Detailed information can be found in the special section of the bank's website.

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