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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

JPM Jankovic Popovic Mitic at a Glance

JPM Jankovic Popovic Mitic is the leading law firm in Serbia, providing full service in Serbia and SEE region. Since 1991, we have been serving national and international clients from various industries in establishing, building and maintaining their business presence in Serbia and SEE. Our expertise, commitment, experience and the highest standard practice has been proven and recognized on the market. Our track record comprises numerous successfully completed landmark transactions in a developing and transitional economy. We are committed to finding solutions and providing flexibility of choice to our clients.

JPM is the founding member of Top-tier Legal Adriatic (TLA) a Vienna-based alliance of leading law firms operating in the Adriatic region. It is an association of independent business law firms with an excellent reputation obtained both locally and internationally, providing a full range of legal services to foreign and domestic clients hailing from various industries.

Firm's website: http://jpm.rs/

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