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Clifford Chance

Clifford Chance


Coronavirus: Prudential treatment of payment Moratoria in Luxembourg

3 August 2020

As a consequence of the COVID-19 pandemic, many businesses and private individuals now face liquidity shortages and difficulties in timely payment of their financial and other commitments. This in turn impacts credit institutions, as delays in the repayment of credit obligations lead to a larger number of defaults and increased own fund requirements. In this context, Member States and/or institutions have introduced moratoria on payments of credit obligations, with the aim of easing the operational and liquidity challenges borrowers are facing.

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