Banks, Covid-19, Crisis, Financial Services, Lithuania

The moratorium allows all private clients to defer their mortgage payments for a period of up to 12 months and their leasing and consumer credit payments for up to six months without any change to their contract conditions or interests rates, the LBA said in a statement.

All residents who made orderly payments before the introduction of the ongoing quarantine but now have financial difficulties and have lost their jobs or some of their income can inform their bank in writing and have their payments of the main mortgage amount deferred for up to 12 months.

In leasing and consumer credit cases, lenders will be able to defer payments for up to six months. During the deferral period, clients will need to pay only interest rates and other periodic payments.

Approved by the central Bank of Lithuania, the moratorium has been signed by Danske Bank's Lithuanian branch, Lietuvos Centrine Kredito Unija (Lithuanian Central Credit Union) and its financial group, Luminor Bank's Lithuanian branch, Medicinos Bankas, SEB Bank, Swedbank and Siauliu Bankas.

The moratorium comes into force on April 20 and will be in place until July 1.