HUB considering moratorium on loan payments over coronavirus

Autor:

11.03.2020.

Zagreb, 051217.
Ulica grada Vukovara.
U HUP-u u organizaciji Jutarnjeg lista, HUP-a i HUB-a odrzana je konferencija Razdoblje niskih kamatnih stopa.
Na fotografiji: Zdenko Adrovic.
Foto: Darko Tomas / CROPIX
Darko Tomas / CROPIX

Croatian Banking Association (HUB) director Zdenko Adrovic

Croatian Banking Association (HUB) director Zdenko Adrovic said on Tuesday measures were being worked on to ease the operations of companies affected by coronavirus and that a moratorium was being considered for companies and households on loan payments with a state guarantee scheme.

HUB representatives will meet with Finance Minister Zdravko Maric on Wednesday and they are in contact with banking institutions in Italy and Slovenia.

Adrovic said that like Italian banks did to their government, HUB would propose to the Croatian government the creation of a state guarantee scheme for banks which would extend or delay loan payment for companies and households affected by the coronavirus epidemic.

Banks could delay loan payments by six to 12 months without having to form new reservations as that would be covered by the state guarantee, he added.

In line with Slovenia's example, Adrovic also proposes that the Croatian Bank for Reconstruction and Development form special credit lines, notably for exporters and the tourism sector, to deal with the illiquidity that will occur due to declines in turnover resulting from the coronavirus fallout.

Adrovic said 14% of Croatian exports went to Italy and that 65% of that went to the regions hit by the virus. He added that import figures were similar.

He also warned of the gaining of the euro against the kuna, the "implosion" on the world's stock exchanges, and disruptions in global supply chains, notably of generic medicines.

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