EU Extends Relief Measures For COVID-hit Loans to March

European Union regulators have revived guidance to allow banks to grant a new round of loan repayment holidays to coronavirus-hit customers until March without triggering a big surge in provisioning that would crimp the flow of credit, Reuters reported. The European Banking Authority (EBA) said on Wednesday that, due to the second wave of COVID-19 infections, guidance for banks that expired on Sept. 30 was being reactivated until March 31, a move welcome by the banking industry. Without the EBA’s guidance, which was first introduced in April, banks would have to start automatically provisioning for loans not repaid 90 days after the due date, making them less likely to keep lending to the COVID-hit economy. As the first set of lockdowns from March closed businesses, banks began granting payment holidays on company loans, mortgages and other credit. Read more