Banks to defer loan payment for tourism businesses until end June 2021

The Croatian Banking Association (HUB) held talks with several associations from the tourism sector on Tuesday to present measures designed to help the sector in the context of the crisis caused by the coronavirus pandemic, including a deferral of loan repayments for tourism businesses until June 30, 2021.

HUB said the measure in question was in line with guidelines from the European Banking Authority and the existing regulations of the Croatian National Bank.

Depending on clients' possibilities and needs, regular interest may be paid for the duration of the moratorium, according to the existing payment schedule, or the loan maturity may be extended to adapt monthly loan installments to clients' possibilities and cash inflow, HUB said.

HUB director Zdenko Adrovic underlined the importance of an individual approach and communication with clients.

HUB carried a statement by the OMH national association of family-run and small hotels, Sime Klaric, that the rescheduling of long-term loans with a moratorium on the payment of the principal until June 30, 2021 was encouraging news for all small and family-run hotels.

"Small hotel owners do not have their own reserves to compensate for the decline in turnover and major losses in 2020 and in the period until summer 2021, when we expect tourists to return in larger numbers. That is why HUB's decision is of crucial importance for their survival."

It was stated at the talks that the stability of the banking system in Croatia would have a key role in economic recovery, which is why banks have been cooperating with domestic and international institutions - the Croatian Reconstruction and Development Bank (HBOR), the HAMAG-BICRO agency and the European Investment Fund - to secure new loans to maintain the liquidity of businesses.

(Hina)

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