Yesterday evening, the Chamber of Deputies approved a new government bill on certain measures in repayment of loans in relation to pandemic COVID-19.

Consumers and entrepreneurs shall be allowed to apply for deferral of loan repayments in general for loans concluded and drawn before 26 March 2020 free of charge. In case of mortgages, the repayment may also be deferred for loans concluded before 26 March 2020 and drawn after this date. However, the deferral of repayments shall not apply to, among other loans, credit cards, overdraft and revolving loans, or operating leasing, or loans where the debtor has been in default of payment for more than 30 days as of 26 March 2020. The deferral of repayments can be used for a period of time until 31 October 2020, or for a shorter period of time until 31 July 2020. When the repayments are deferred tradesmen shall pay the principal and the agreed interest subsequently. In case of entrepreneurs (legal entity) the deferral of repayments shall apply to the principal of loans, the agreed interests shall be paid in the original terms. The notice of the use of the „term of protection“ shall include a debtor’s statement of the intention to use the term of protection due to the negative impact of COVID-19 pandemic on the debtor, and a specification of the loan to which the notice relates (otherwise the notice applies to all loans concluded between the debtor and a bank).

The bill could be discussed by the Senate on Thursday 9 April 2020. If approved, the Act shall come into effect on the day of its publication.