Decree of NBS No 9/2019

1 9 DECREE of Národná banka Slovenska of 17 December 2019 amending Decree No 10/2017 of Národná banka Slovenska laying down detailed provisions on the assessment of borrowers’ ability to repay consumer loans, as amended by Decree No 6/2018 of Národná banka Slovenska Národná banka Slovenska, in accordance with Section 7(41)(a) to (c) of Act No 129/2010 on consumer credits and on other credits and loans for consumers (and amending certain laws), as amended, has adopted this Decree: Article I Decree No 10/2017 of Národná banka Slovenska laying down detailed provisions on the assessment of borrowers’ ability to repay consumer loans (Notification No 306/2017), as amended by Decree No 6/2018 (Notification No 168/2018), is amended as follows:

1. In Section 2(3)(a), the words ‘8 and 9’ are replaced by the words ‘12 and 13’ and, in subparagraph (b), the words ‘10 to 17’ are replaced by the words ‘14 to 21’.
2. In Section 2(5), second sentence, the number ‘20’ is replaced by the number ‘40’ and, at the end, the full stop is replaced by a comma and the following words are added: ‘unless paragraphs 8 and 9 provide otherwise.’.
3. In Section 2, new paragraphs 8 to 11 are inserted after paragraph 7 as follows: ‘(8) The volume of consumer loans and housing loans provided to borrowers whose expenditure under paragraph 5 is increased by at least 30% and less than 40%, excluding consumer loans referred to in paragraph 11 and loans provided under other legislation,3a shall not constitute more than 7% of the total volume of new consumer loans and housing consumer loans provided under loan agreements concluded in the same calendar quarter, excluding consumer loans referred to in paragraph 11 and loans provided under other legislation,3a nor shall that volume constitute more than 5% of the total volume of new consumer loans and housing loans provided under loan agreements concluded in the same calendar half-year, excluding consumer loans referred to in paragraph 11 and loans provided under other legislation. 3a (9) The volume of consumer loans with a term not exceeding five years and consumer loans in the form of an authorised overdraft or credit card credit which are provided to borrowers whose expenditure under paragraph 5 is increased by at least 30% and less than 40%, excluding consumer loans referred to in paragraph 11, shall not constitute more than 7% of the total volume of new consumer loans with a term not exceeding five years and consumer loans in the form of an authorised overdraft or credit card credit which are provided under loan agreements concluded in the same calendar quarter, excluding consumer loans referred to in paragraph 11, nor shall that volume constitute more than 5% of the total volume of new consumer loans with a term not exceeding five years and consumer loans in the form of an authorised overdraft or credit card credit provided under loan agreements concluded in the same calendar half-year, excluding consumer loans referred to in paragraph 11. (10) If, within the previous three months, the creditor provided a consumer loan or housing loan to the borrower in addition to the new loan, or topped up a consumer loan that the same creditor had previously provided to the borrower, the cumulative value of all such loans shall be included in the total volume of consumer loans and housing loans for the

2 purposes of paragraphs 8 and 9. This does not apply to existing loans that will be repaid by the consumer loan applied for. (11) The DSTI ratio limit under paragraphs 1 to 5 does not apply to consumer loans that are to be used to refinance one or more existing consumer loans or housing loans, or to existing consumer loans that are to be topped up by amending the consumer loan agreement, provided that the amount of the consumer loan applied for does not exceed by the lower of the following amounts the sum of the outstanding amounts of the loans to be refinanced or topped up: a) €2,000; b) 5% of the sum of the outstanding amounts of these existing loans.’. Paragraphs 8 to 19 are renumbered 12 to 23. Footnote 3a is added as follows: ‘ 3a Section 2(8) of Decree No 10/2016 of Národná banka Slovenska (Notification No 373/2016), as amended by Decree No ... /2019 (Notification No .../2019).’. 4. In Section 2(17) and (18), the words ‘11 and 12’ are replaced by the words ‘15 and 16’. 5. In Section 2(19), the words ‘11 to 14’ are replaced by the words ‘15 to 18’. 6. In Section 2(20), the words ‘11 to 15’ are replaced by the words ‘15 to 19’. 7. In Section 2(22), the words ‘10 to 17’ are replaced by the words ‘14 to 21’. 8. In Section 6a(3), the word ‘5%’ is replaced by the word ‘7%’ and, at the end, the full stop is replaced by a comma and the following words are added: ‘nor shall that volume constitute more than 5% of the total volume of new consumer loans and housing loans provided under loan agreements concluded in the same calendar half-year, excluding loans referred to in paragraph 5 and loans provided under other legislation.11a’. 9. In Section 7(2), the words ‘paragraph 11’ are replaced by the words ‘paragraph 15’. 10. Section 7b, including heading, is inserted after Section 7a as follows: ‘7b Transitional provisions for regulations in effect from 1 January 2020 (1) From 1 January 2020 to 31 March 2020, the provision of Section 2(8) applies as follows: the volume of consumer loans and housing loans provided to borrowers whose expenditure under Section 2(5) is increased by at least 20% and less than 40%, excluding consumer loans referred to in paragraph 3, consumer loans referred to in paragraph 2(11) and loans provided under other legislation, 3a shall not constitute more than 15% of the total volume of new consumer loans and housing loans provided under loan agreements concluded in the same calendar quarter, excluding housing loans referred to in paragraph 2(11) and loans provided under other legislation. 3a (2) From 1 April 2020 to 30 June 2020, the provision of Section 2(8) applies as follows: the volume of consumer loans and housing loans provided to borrowers whose expenditure under Section 2(5) is increased by at least 30% and less than 40%, excluding consumer loans referred to in Section 2(11) and loans provided under other legislation,3a shall not constitute more than 5% of the total volume of new consumer loans and housing loans provided under loan agreements concluded in the same calendar quarter, excluding consumer loans referred to in paragraph 2(11) and loans provided under other legislation. 3a

3 (3) Where a consumer loan agreement is concluded after 31 December 2019 but the creditor has duly assessed the borrower’s DSTI ratio on or before 31 December 2019, the consumer loan is subject to Section 2(5) as in force until 31 December 2019.’. Article II This Decree takes effect on 1 January 2020. Peter Kažimír Governor Issuing unit: Regulation Department Banking and Payment Services Regulation Section Telephone: +421 2 5787 3301