The Minister of Finance, based on the decision of the Council of Ministers and after the consent of the Central Bank, exercising the powers vested in him by article 5 of the Emergency Suspension Measures by Financial Institutions and Supervisory Authorities Law of 2020, issues the following decree:
(1) The emergency measures shall enter into force from the issuance date of the present Decree (i.e. 30th March 2020) until the 31st of December 2020.
(2) (2) (a) The obligation of payment of instalments, including interest on credit facilities granted and/or purchased and/or managed by financial institutions, is suspended for natural persons, legal entities governed by public law, self-employed individuals and Enterprises (beneficiaries).
It is implied that the present Decree covers syndicated loans that have been jointly granted by financial institutions and third parties.
(b) The suspension of the obligatory payment of instalments applies to natural persons, legal entities governed by public law, self-employed individuals and Enterprises, that did not delay the payment of the instalments, beyond 30 days, from the date that the specified credit facility was provided, i.e. on the 29th of February 2020, but they face financial difficulties as a result of the impact of the pandemic COVID-19.
(c) The suspension of the instalments shall be applicable from the date of issuance of this Decree, provided that the beneficiaries send in writing or via e-mail, or via mail, or via fax, to the financial institutions their expression of interest, as this is referred to in the Exhibit of the present Decree.
It is implied, that the financial institution is not entitled to reject the expression of interest of any individual, excluding the cases where the individual concerned, does not meet the criterion of non-existing delays beyond 30 days and has submitted the expression of his interest-in-suspension of instalments.
It is further implied, that the interest for which the payment period is suspended will be added to the remaining balance of the loan at the date of expiry of the present Decree, and the sum of the capital instalments and interest payments which are to be suspended will not be constituted immediately due, unless otherwise agreed between the beneficiary and the financial institution.
(d) The terms of the existing loan agreement, excluding the repayment condition, as well as, all the relevant collateral documents will be applicable during the suspension period and also after the termination of the suspension of the instalments period. It is provided, that on the date of expiry of the present Decree, the payment of instalments and interest shall resume, and the repayment period shall be deemed automatically extended as required, until the final repayment of the capital and interest, in accordance with the terms of the existing relevant loan agreement and the agreed repayment plan, unless otherwise agreed between the beneficiary and the financial institution.
It is further implied, that despite the aforementioned suspension and during its application, it is on the discretion of the borrower, given that the borrower informs the financial institution, to pay or to voluntarily pay, any amount or amounts in respect of or for the repayment of instalments and/or interest which – if the said suspension was not existing – would be constituted payable according to the terms of the relevant credit facility agreement.
(3) Measures taken by financial institutions for recovery of the credit facilities covered by subsection (2) of the present article are suspended. Failure to pay such instalments during the suspension period does not constitute in any manner breach of the terms of the contract between the beneficiary and the financial institution.
(4) The financial institutions’ obligation to prepare, submit and disclose their financial accounts for fiscal year 2019 it is hereby suspended upon their written request to the competent supervisory authorities.
It is implied, that during the submission by the financial institution, but also during the evaluation by the competent supervisory authority, the relevant guidelines as issued by the European supervisory authorities will be considered.
(5) The obligation of self-employed individuals and Enterprises for submission of their financial statements to financial institutions for the year 2019, shall be suspended, upon their written request to the financial institutions, given that subsection (2) for suspension of instalments is applicable. It is implied, that in cases of applications for the administration of new credit facilities, the provisions of Central Bank’s Directive of 2016-2020, Procedures of Administration and Review of Existing Credit Facility, as well as the relevant circulars issued or that could be issued pursuant to the said Directive of the Central Bank will be applicable.
Interested parties may send their expression of interest as set out in the Appendix of the Relevant Decree
in writing or by mail or by e-mail or by fax to the financial institutions.