Regulatory Alerts2021-05-07 | 29703Moratorium on Regulatory Treatment of Payment Deferrals or Restructured Loans due to COVID-19 Measures
The banking sector regulator has implemented a moratorium on the regulatory treatment of payment deferrals and restructured loans. Financial institutions must now classify these loans as performing assets rather than non-performing, provided the borrowers are directly impacted by COVID-19 measures. This regulatory shift allows lenders to maintain standard provisioning levels while supporting borrowers through economic disruptions.
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