Ministry of Finance Announcement with regards to the process for Suspension of Loans

The Ministry of Finance has issued clarifications with regards to the process for applying for suspension of loans to financial Institutions which we summarize below:

  1. Question 1. Where can the application be found?

This form can be downloaded here ekdilosi_endiaferontos

  1. Question 2. How do we submit the application? Can this be submitted electronically or do we have to physically submit this at the bank?

One does not have to go to the bank physically. Submission can be through email, fax or by post. By hand only if submission cannot be carried out in any other manner.

  1. Question 3. Is the application form common for both Individuals and Companies?

Yes. The application form is common both for companies and Individuals. The unsigned Declaration sent for suspension of installments and interest and attached  is accepted by the financial institution.

  1. Question 4. If someone has multiple loans and would like to fill in the form for specific loans only should he/she fill-in a separate application form for the loans for which payments should not be suspended?

By completing the application form, the borrower expresses his need for suspension of loans and interests on all loans in which he is the primary borrower or co-borrower.

If he does not wish to suspend installments and interest on a particular loan, he may state this at the specific point of the form at the end of the first paragraph where it is clear to the financial institution for which loan he does NOT wish to suspend and wishes to continue their payment.

If he/she wishes to suspend payment for all loans, then he/she can leave that point blank (or delete) at the end of the first paragraph of the form.

  1. Question 5.  Are there any implications for those who choose to suspend doses? Will their loan become a Non-Performing Loan?

Based on the Decree, for a period of 9 months until 31/12/2020, the suspension of loan and interest payments does not classify the loan as a non-performing loan.

  1. Question 6. Does the form apply to loans only or can it also apply to  current accounts (overdrafts) as well as credit cards?

The suspension of installments and interest, as stipulated in the Decree of the Minister of Finance, includes the interest resulting from overdrafts as well as the credit card installments.

 

  1. Question 7. What happens if someone has a loan with one financial institution and a Direct Payment Order with another financial institution to pay this? Should both institutions be advised  of the form submission?

Those who send the Statement of Suspension of Installments and Interest to their financial institution should inform in parallel with the relevant instructions and the financial institution from which the installments are paid in case this is different.

 

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