Slovenská sporiteľňa will help out clients who will apply for deferral of loan payments via the so called LEX KORONA which was introduced by the Ministry of finance and banks today. It is a systemic solution to assist people, entrepreneurs and businesses negatively affected by the coronavirus pandemic. The new regulations will make it possible to completely defer payments of their current loans and entrepreneurs and businesses will be able to obtain new loans. The act is still to be passed by the government and parliament.

“The Slovak economy will need a restart and the mutual agreement in form of the so called LEX KORONA is a good sign. We’ve always supported a systemic solution and I am convinced that today’s proposal will help out people and businesses in Slovakia. According to our assumptions, more than 100 thousand families and several thousand businesses will need loan assistance in an optimistic scenario. Should the crisis last longer, this number may be much higher. However, the banking industry is one of the healthiest ones in Europe and will be able to handle the difficult situation. I want to stay optimistic and I am convinced that if politicians, key institutions, banks and people in Slovakia cooperate, we will be able to overcome the corona crisis,” said Peter Krutil, CEO and Chairman of the Board of Directors of Slovenská sporiteľňa.

Deferral of loan payments

• Applies to instalment loans, i.e. consumer loans and housing loans.
• Clients will be able to defer payments by 9 months maximum. If the client meets basic criteria for deferral, the bank will process his/her request and will inform him/her of the modified payment schedule. The loan balance continues to bear interest during the deferral period.
• The Client is to fulfil conditions specified by the law, i.e. he/she may not be in delay with his/her payments for more than 30 days as of the date of submitting the application. He/she may also not be in delay or in default with any of his/her other loans.
• The client won’t have to pay the annuity payment, i.e. interest and principal during the deferral period. However, insurance is still to be paid if clients want to remain insured which is something we highly recommend given the current situation; otherwise the insurance will be terminated.
• Banks will send information to the Credit Bureau that the client made use of the Lex Korona option and it won’t have a negative impact on the client’s ability to draw down a loan after the deferral period.
• The application process should not last longer than a couple of days. It may depend on the fact whether the client filed the application via George (the fastest method), phone call to Client centre, letter or branch.
• You may only apply for the deferral once. It is therefore recommended to carefully consider the timing of the application. If the client applies for deferral of payments now, he/she will not be able to apply for the deferral of payments under LEX KORONA in the future. Therefore, it is highly advisable to apply for the deferral only when the client’s situation rapidly deteriorated and he/she no longer has any reserves or options how to repay his/her liabilities.

Modified deferral of payments entrepreneurs and businesses

• Deferral will be possible for 9 months maximum given all conditions are met.
• The “3+3” principle will be applied for deferral of leasing payments. A business or an entrepreneur will be able to defer the payments for 3 months in the first stage and if needed an additional deferral of 3 months will be possible.
• The deferral won’t require any additional collateral or conditions to be met.
• The loan balance bears interest during the deferral period.
• The deferral won’t have a negative impact on the ability of entrepreneurs and businesses to draw down a loan after the deferral period.
• Clients won’t have to visit branches or corporate centres; they will be able to complete the whole process electronically.