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Clifford Chance

Clifford Chance


Coronavirus: EBA issues guidelines on prudential treatment of payment moratoria

7 April 2020

On 2 April 2020 the European Banking Authority published formal guidelines (which are now final, but will not formally apply until they have been translated into all EU languages) on the regulatory treatment of the various coronavirus-related payment moratoria introduced across Europe. These Guidelines aim to formalise and set out in more detail existing statements to the effect that COVID-19 "payment moratoria do not trigger forbearance classification and the assessment of distressed restructuring if they are based on the applicable national law or on an industry- or sector-wide private initiative agreed and applied broadly by relevant credit institutions".

In this briefing, we highlight the main features of the Guidelines and their impact on European banks.

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