United Bulgarian Bank (UBB) extends the period of the measures for deferral of credit liabilities in line with the COVID-19 pandemic. UBB’s reaction results from the accepted by the Bulgarian National Bank (BNB) proposal of the Association of Banks in Bulgaria (ABB) for extending the deadline for submission of requests by bank clients under the Procedure for Deferral (Procedure for Deferral and Settlement of Callable Liabilities to Banks and Their Subsidiary Companies) with 90 days. Thus the new deadline for submission of requests is 23 September, while that for their approval by UBB – respectively 30 September 2020. Accordingly, the new deadline for deferral of client liabilities is 31 March 2021. The extension of the effectiveness period of the Procedure for Deferral of Liabilities is applicable to exposures, for which no payment deferral request has been filed prior to 22 June 2020.

Clients, who have been impacted by the pandemic or the restrictions, introduced with the Measures and Actions during a State of Emergency Act and want to use relaxed terms and conditions, should fill out a Declaration Statement form, available on the Bank’s website www.ubb.bg/en/covid19. Individual clients will not owe any renegotiation or other fees, related to UBB’s offer, as has been the case until now.

There is no change either in the procedure, under which received deferral requests are being considered and as is the case until now for non-revolving products clients are being provided with a new repayment plan, covering the full outstanding debt amount, including the unpaid principal during the grace period, as the repayment plan period is being extended with the same number of months, with which the loan repayment has been deferred.

Should a client choose to defer the repayment of only the principal, then over the months of the grace period he/she is going to pay only the due interest for the regular debt on the present principal.

Should a client choose to defer the repayment of the principal and of the interest, then the accrued and non-paid interest for the regular debt on the present principal during the grace period will be distributed in equal portions and added to the monthly installments over a maximum period of up to 12 months for consumer loans and up to 60 months for mortgage loans.

Additionally, the BNB undertakes to publish on a monthly basis summary info on the received and approved deferral requests by banks in line with this Procedure. Information about the months of April, May and June 2020 will be published on 31 July 2020. As regards the subsequent months of the approved Procedure’s effectiveness monthly info will be published on the last business day of the month, following the reporting period end.