European Banking Authority phases out guidelines on payment moratoria from 30 September

21.09.2020

The European Banking Authority (EBA) will phase out its guidelines (GL) on legislative and non-legislative payment moratoria as planned at the end of September.  According to the notifications received by the EBA, most EU banks participated in such schemes, with average payment extensions between six and 12 months. The regulatory treatment set out in the GL will continue to apply to payment holidays granted under eligible payment moratoria before 30 September 2020. However, banks offering payment moratoria after 30 September 2020 should classify these loans on a case-by-case basis according to the regular prudential framework.