Central Bank announces moratorium on deferred loans
Clint chan tack
The central bank said a moratorium on deferred lending is in effect until September 30.
The bank also said it would meet with commercial banks in the coming weeks “to discuss detailed plans in place to monitor and manage credit and liquidity risks and capital during and after the moratorium “.
In a circular letter of May 7, the bank expressed concern about “the difficulties our national community is currently facing in the face of the effects of the current pandemic and the potential difficulties it presents to clients of financial institutions”.
The bank recalled that it had previously extended an initial moratorium on deferred loans by letter dated March 24, 2020 and that it was subsequently extended twice last year, ending December 31, 2020.
But the bank said: “In view of the new circumstances, the Central Bank considers it appropriate to reintroduce a moratorium on the regulatory treatment of loans rescheduled due to ‘missed payments’ or rate and facility cuts. overdue for the period May 1, 2021. to September 30, 2021. “
The bank has asked financial institutions to note that certain conditions apply during the moratorium. These include postponements offered to clients during the moratorium which are due to expire on September 30, regardless of the actual date on which the postponement began; borrowers who were outstanding before the new moratorium period and who subsequently accepted the “missed payment” provision due to the effects of covid19 should generally not be reported as past due.
In a brief statement Friday, RBC said, “RBC Royal Bank has no current plans to reintroduce a mass loan deferral program.”
He added, “However, if clients are having financial difficulty meeting their loan obligations, we encourage them to contact an RBC representative for assistance.
In a separate statement, Karen Tom Yew, Managing Director of Republic Bank (Group Marketing and Communications), said: “Republic Bank will continue to comply with all guidelines issued by the Central Bank of Trinidad and Tobago as we are supporting those affected by the pandemic. “
Questions were sent to the Bankers Association and other commercial banks about the moratorium. Until the date of publication, there was no response from these organizations.