The Finance Latvia Association, in cooperation with its members, has worked out the moratorium that enables bank customers (private individuals), who are having short-term financial difficulties caused by the COVID-19 outbreak, to defer mortgage principal payments for up to 12 months and leasing and consumer loan principal payments - for up to six months.
According to the moratorium, a customer will be able to receive a principal payment deferral if the customer had no significant delays in meeting obligations in the last 12 months before 12 March 2020, has not been declared insolvent before that date or during the principal deferral period, and continues to pay, during this period, loan interest and / or other payments specified in the loan agreement. The customer should continue to act in good faith, cooperate fully and openly with the bank, as well as provide to it accurate information.
No commission fee will be charged for reviewing the application of a customer. No other amendments to the agreement that would worsen the customer's situation will be made. The moratorium ensures a simple process of principal payment deferral for customers. The customer will be only required to specify what is the exact reason for the principal deferral in connection with the COVID-19 virus outbreak, for example, reduced income, terminated employment, etc. The customer may also choose a shorter principal deferral period than the one specified under the moratorium.
We urge customers of Industra to carefully and objectively assess their financial capabilities and the development of the situation.