BlueOrange supports the delay of base loan repayments for companies

May 05, 2020

The Bank will now have an option to delay the base loan repayments for up to six months on receipt of the companies' respective application.

BlueOrange joins the moratorium developed by the Finance Latvia Association in cooperation with its members, which provides for bank clients — legal entities suffering from short-term financial difficulties due to COVID-19 — the possibility to delay payment of their base loan repayment sum for up to six months.

The moratorium applies to legal persons and other performers of economic activity who are not self-employed and whose total credit liabilities do not exceed EUR 5,000,000. The moratorium will change the repayment schedule of the base sum if the loan agreement stipulates the repayment of the base sum in parts. According to the client’s wishes, the repayment of the base sum is partially or fully delayed for the period stated in the moratorium of up to six months. During this period, the client must continue to pay interest and settle execute other liabilities established in the loan agreement.

Detailed information on the conditions of the moratorium is available in the home page of the Finance Latvia Association.

The moratorium comes into force on May 5th, 2020, and remains in force until the Finance Latvia Association issues notification of its ending. Clients must apply to delay their base loan repayments by June 12th, 2020, and the Bank must make a decision by June 30th, 2020.

The moratorium has been agreed with the Financial and Capital Market Commission, and has also been reviewed by the Competition Council of Latvia after consultations with the European Commission. Banks therefore harmonise their actions and provide increasing support to their clients.

Additional information — On temporary non-legislative loan payment moratorium for legal entities.