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National Bank of Serbia Announced Moratorium

National Bank of Serbia Announced Moratorium

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The National Bank of Serbia announced moratorium on all debts towards banks and finance lease providers as a measure to preserve stability of the financial system of Serbia. The measure is part of actions undertaken by Serbian authorities during the declared state of emergency to fight the coronavirus.

As one of the measures introduced by Serbian authorities to fight negative impacts of the outbreak of coronavirus, the National Bank of Serbia (“NBS”), the Serbian central banking authority, announced moratorium on debts towards banks and finance lease providers. The NBS adopted two decisions:

  1. Decision on temporary measures to preserve stability of the financial system, and
  2. Decision on temporary measures for finance lease providers to preserve stability of the financial system.

As stated by the NBS, the moratorium is applicable to all debtors, who wish to benefit from the moratorium (natural persons, farmers, entrepreneurs and companies). The moratorium would last at least 90 days, or during the declared state of emergency. During the term of the state of emergency, a bank and a finance lease provider would not accrue default interest on outstanding payables, initiate enforced collection, or undertake any action aimed at collection of receivables from clients. Additionally, as a precaution measure, the NBS instructed that a bank and a finance lease provider would not be entitled to claim any costs reimbursement related to the adopted regulations.

Banks and finance lease providers are obliged to publish the moratorium on their websites. Publishing the notice on moratorium it shall be deemed that the notice is delivered to all clients of respective banks and finance lease providers. If clients do not respond to the published notice within 10 days, the moratorium shall be effective without any action of clients. However, clients may at their discretion reject moratorium in which case they must expressly communicate such rejection to bank/finance lease provider.

Still, clients shall retain right to repay debts at their discretion during moratorium.

By JPM Jankovic Popovic Mitic

Serbia Knowledge Partner

SOG in cooperation with Kinstellar is a full-service business law firm in Serbia that provides foreign and domestic clients with premium-quality legal advice and assistance across a wide range of key areas of corporate law. The firm was founded in 2015 by a group of seasoned, internationally-trained lawyers. SOG has developed a distinctively dynamic culture, bringing together top talent, fostering entrepreneurship, and maintaining exceptional relationships with its clients.

SOG has achieved consistent growth in the volume of its business, accompanied by an exponential increase in the number of hired associate lawyers and the firm’s network of business contacts. SOG has a robust client base of multinationals, investment and private equity firms, and financial institutions. Clients praise SOG for being commercially minded, very responsive and knowledgeable.

Establishing permanent cooperation with Kinstellar is part of realising SOG's long-term development strategy to be the leading provider of legal services in the Western Balkans market.

Firm's website: https://www.kinstellar.com/

 

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