BRH Extends Loan Moratorium Measures Until March 31, 2024 to Support Businesses Amid Crisis

The BRH announced the renewal of loan moratorium measures until March 31, 2024. This decision aims to help companies in financial difficulty due to the continuing socio-political crisis. During this period, only interest will be due, and no late fees will be applied..

The new governor of the BRH, Gabriel Ronald, confirmed, on Monday, November 6, 2023, in a message published on his Twitter account that the moratorium measures on loans have been extended until March 2024 due to economic difficulties that businesses face.

Credit financial institutions may grant a moratorium to debtor companies meeting the following criteria: eligible loans are those classified as Current or Reportable as of June 30, 2023, and which have become unproductive as of September 30, 2023 or which have a high probability of doing so. become due to current socio-political unrest” we read in circular 115-4.

Approved microfinance companies, banks with microcredit divisions and savings and credit cooperatives (CECs) may grant their eligible customers who wish to benefit from a moratorium until March 31, 2024. Eligible customers are those whose loans were healthy as of June 30, 2023 and which are likely to become unproductive as of September 30, 2023 due to the socio-political unrest that the country is currently experiencing, underlines the said circular.

During the moratorium period, only interest is due,” recalled the BRH number, adding that no fees will be applied during this suspension of payment.

The BRH informs all institutions affected by this measure of the obligation imposed on them to transmit to the BRH an electronic report by December 31, 2023 and March 31, 2024, a report on loans having benefited from a moratorium within a deadline not exceeding 21 days after the end of each of these quarters.

It is important to note that the moratorium is an exceptional measure which intervenes within the framework of the relationship between creditor and debtor. It allows payments to be suspended and due dates to be postponed due to particular circumstances, which should not be confused with the “grace period” granted to the debtor personally in the context of legal proceedings.