DECISION ON TEMPORARY MEASURES FOR RESCHEDULING LOAN OBLIGATIONS OF PHYSICAL AND LEGAL PERSONS BY BANKS. Article 1

Transcription

1 Based on Article 4, 10, and 25 of the Law on Banking Agency of Republika Srpska Revised Text (Official Gazette of Republika Srpska No. 67/07) and Article 86 of the Law on Banks of Republika Srpska ( Official Gazette of Republika Srpska No. 44/03 and 74/04), on its session held on December 29, 2009 the Managing Board of the Banking Agency of Republika Srpska passed the DECISION ON TEMPORARY MEASURES FOR RESCHEDULING LOAN OBLIGATIONS OF PHYSICAL AND LEGAL PERSONS BY BANKS Article 1 In order to alleviate negative effects of global financial crisis, this Decision stipulates temporary measures related to rescheduling i.e. restructuring loans to physical and legal persons. Article 2 Under a request of physical or legal person Bank may reschedule all of his/her loan obligations, in cases where it was not recorded that client was in delay meeting such obligations, and had no delay longer than 90 days except for approved current account overdraft, which shall not be subject to the rescheduling. Loan obligations from Paragraph 1 of this Article include all due and not due principals, due not collected interest and fees, and possible costs in the process of providing for instruments to cover receivables. Article 3 In the process of rescheduling existing receivables a new type of receivables is created and regulated by a contract in cases where such a receivable is to replace all balance sheet receivables from debtor, i.e. a portion of such receivables resulting from deterioration of the debtor s financial condition, and where conditions under which the existing receivables were approved have significantly changed (including especially extension of the repayment term for principal and/or interest, decrease of interest rate or the amount of receivables or other significant change, which would alleviate position of debtors encountering temporary difficulties in servicing their debts). Article 4 In the process of rescheduling i.e. restructuring loan obligations bank may prolong the final date of loan repayment by at least 12 months which will decrease loan repayment installment. RS Decision on Loan Obligation Rescheduling Page 1

2 Article 5 In case when for a loan with the grace period a repayment in a single installment was contracted, rescheduling may be performed by modifying receivables of a single repayment into a repayment through monthly installments. Article 6 Before approving loan rescheduling under debtor s request, bank is obligated to inform the debtor in a transparent way on all effects of such loan rescheduling. Terms of approved loan rescheduling (duration of the period of time, the amount of approved rescheduling, the amount of individual installment and interest, and similar) shall be determined by the bank through an analysis of financial condition, operation, and total debtor s indebtedness, as well as his/her projected cash flows, in accordance with the bank s internal policies and procedures developed in accordance with the Decision on Minimum Standards for Bank s Credit Risk management and Assets Classification ( Official Gazette of Republika Srpska no. 12/03, 85/04 and 1/06). In the process of rescheduling debtor s loan obligations the bank is obligated to assess its liquidity position, and to provide for minimum standards for liquidity risk management, especially in the segment of maturity adjustment of financial assets and financial liabilities, and capital adequacy in both current period and the period after approved rescheduling, as well as the total financial condition. Article 7 In the sense of this Decision bank may, in the process of restructuring, reschedule loan extended to a physical person if the following conditions are fulfilled: 1) Debtor has submitted request in writing; 2) Debtor has enclosed adequate documentation proving that: a) debtor has lost his/her job through no fault of his/hers own; or b) debtor s salary or other regular personal income has been significantly decreased, at least 20%, in accordance with criteria established by bank s internal procedures; or c) debtor receives salary or other regular personal income irregularly with delay of at least 3 months; or d) debtor is not able to service the debt due to other reasons which resulted from causes creating conditions listed under a), b), and c) above; 3) Debtor has no delay and no delay longer than 90 days in repaying the loan that is being rescheduled; 4) Bank has assessed that the change of loan terms will enable debtor to meet orderly his/her obligations related to the bank. RS Decision on Loan Obligation Rescheduling Page 2

3 Conditions from Paragraph 1 of this Article shall be applied for restructuring loans originally approved in a maximum amount of KM 70, or loans for which, in the moment of rescheduling, debt does not exceed the stated amount or loans approved for purchase of apartment regardless the amount of the loan approved, which apartment is or will be used by the debtor for living, and the loan is secured by a marketable collateral. In the process of assets classification, a loan to physical person that has been restructured under conditions from this Article may be treated by the bank as a new loan. Article 8 Under this Decision, in the process of rescheduling, bank may restructure a loan to a legal person if the following conditions have been met: 1) Debtor has submit a written request; 2) Debtor shall be solvent; 3) Debtor does not have repayments in delay nor delay longer than 90 days in repaying the loan which is being restructured; 4) Bank s assessments have shown that extension of due term will enable the debtor to meet his/her obligations to bank orderly in the future period. Article 9 In the process of assets classification, a loan to legal person that has been restructured and for which there was no delay in repayments before restructuring may be treated by the bank as a new loan, and further classification will depend on how orderly obligations are met and on other elements in accordance with the Decision on Minimum Standards for Credit Risk Management and Assets Classification of Bank. In case of rescheduling a loan to a legal person, which in the moment of rescheduling and under provisions of the Decision on Minimum Standards for Credit Risk Management and Assets Classification of Bank meets requirements for classification into B category, bank is obligated to keep such a loan in B category during the following period in which the debtor will have orderly repaid at least 3 successive installments. After the period from Paragraph 2 of this Article and in case when debtor has orderly serviced his/her obligations under the new contract or annex of the contract, the bank may perform a new classification of such a receivable. If debtor does not meet obligations under the new contract, i.e. annex of the contract, a further classification shall be performed in accordance with the Decision on Minimum Standards for Credit Risk Management and Assets Classification of Bank. RS Decision on Loan Obligation Rescheduling Page 3

4 Article 10 Loans that have been rescheduled under the Decision on Temporary Rescheduling Physical Persons Loan Obligations and Related Actions of Banks in Republika Srpska ( Official Gazette of Republika Srpska no. 82/09) as well as classification of such loans shall remain in force up to expiration of deadlines stipulated in the Decision above (up to 12 months). The rest of loans that were rescheduled in 2009 and are meeting conditions stipulated in Article 8 of this Decision may be classified as stipulated in Article 9 of this Decision. All other loans that were rescheduled in 2009 and are not meeting conditions stipulated in Article 8 of this Decision shall be classified by bank in accordance with provisions of the Decision on Minimum Standards for Credit Risk Management and Assets Classification of Bank. Article 11 Bank shall not reschedule and restructure loans in the sense of this Decision in such a way as to aggravate debtor s position (increase of interest rate, collecting fees for rescheduling performed, etc.) except for possible costs in procedure of providing for instruments to cover receivables. Article 12 Bank is obligated to maintain detailed records on approved loans rescheduled in such a manner that all activities, individual and overall approvals, as well as their effects are clearly entered and available to authorized bodies of the bank and Banking Agency of Republika Srpska (hereinafter: the Agency) for the purpose of performing supervision. Bank is obligated to submit to the Agency quarterly reports in electronic form on loan obligations rescheduled in the course of the quarter, in accordance with the Form REP, which is attached to this Decision constituting its integral part, within 30 days after the last day of the reporting quarter. Bank is obligated to submit to the Agency a single annual report in electronic form on all loans rescheduled in 2009 which have met conditions from this Decision as of December 31, 2009 (based on both preliminary and final statement) in accordance with deadlines stipulated by the Form from Paragraph 2 of this Article. RS Decision on Loan Obligation Rescheduling Page 4

5 Article 13 Effects of implementation of classification of loans from Article 10, Paragraph 2 of this Decision shall be shown by bank in balance sheet and income statement for December 2009 without possibility to enter changes into previous reports. Classification of loans rescheduled after 2009 shall be the subject of the belonging reporting period. Article 14 As of the day of this Decision coming into force the Decision on Temporary Rescheduling Loan Obligations of Physical Persons and Related Acting of Banks in Republika Srpska ( Official Gazette of Republika Srpska no. 82/09) shall cease to be valid. Article 15 This Decision shall come into force as of the day of its being published in the Official Gazette of Republika Srpska. UO number: 148/09 December 29, 2009 Banja Luka PRESIDENT OF MANAGING BOARD Mirjana Jacimovic RS Decision on Loan Obligation Rescheduling Page 5

6 /Name of Bank/ /Identification Number/ Report on Rescheduling Loan Obligations as of Number of submitted requests for rescheduling Number of requests for rescheduling approved FORM: REP SURVEY OF LOAN OBLIGATIONS RESCHEDULING APPROVED No. Name/Title of Debtor Amount of Loans Other Placements Amount of Interest Due Total Debt Rescheduled Extended repayment Deadline (Yes - No) Category of Classification Before Rescheduling Category of Classification After Rescheduling Amount by which Loan Loss Reserve was decreased based on rescheduling Earlier delays in repayment (max. no. of days) Current repayment delayed by no. of days = I Legal Entities Resident (R) or Non- Resident (NR) II TOTAL I: Physical Persons and Entrepren eurs TOTAL II: TOTAL (I+II): /Name and last name/signature/phone of Authorized Person/ /Name and last name/signature/phone of Authorized Person/ RS Decision on Loan Obligation Rescheduling Page 6

7 Based on Article 4, 10, and 25 of the Law on Banking Agency of Republika Srpska Revised Text ( Official Gazette of Republika Srpska No. 67/07) and Article 86 of the Law on Banks of Republika Srpska ( Official Gazette of Republika Srpska No. 44/03 and 74/04), on its session held on November 30, 2010 the Managing Board of the Banking Agency of Republika Srpska passed the DECISION ON MODIFICATION OF THE DECISION ON TEMPORARY MEASURES FOR RESCHEDULING LOAN OBLIGATIONS OF PHYSICAL AND LEGAL PERSONS BY BANKS Article 1 In Decision on Temporary Measures for Rescheduling Loan Obligations of Physical and Legal Persons by Banks ( Official Gazette of Republika Srpska No. 9/10) in Article 15 the number 2010 shall be replaced by the number Article 2 This Decision comes into force on the eighth day of its being published in the Official Gazette of Republika Srpska. UO number: 192/10 November 30, 2010 Banja Luka PRESIDENT OF MANAGING BOARD Mirjana Jacimovic RS Decision on Loan Obligation Rescheduling Page 7

8 Pursuant to Article 86 of the Law on banks of Republika Srpska ( Official Gazette of Republika Srpska number 44/03, 74/04 and 116/11), Article 4, 10 and 25 of the Law on Banking Agency of Republika Srpska Revised text ( Official Gazette of Republika Srpska number 67/07 and 40/11), and Article 15, paragraph 1, item 2 of the Statute of the Banking Agency of Republika Srpska ( Official Gazette of Republika Srpska number 67/04), on its session held on December 7, 2011 the Management Board of the Banking Agency of Republika Srpska passed the DECISION ON MODIFICATION TO THE DECISION ON TEMPORARY MEASURES FOR RESCHEDULING LOAN OBLIGATIONS OF PHYSICAL AND LEGAL PERSONS IN BANKS Article 1 In the Decision on temporary measures for rescheduling loan obligations of physical and legal persons in banks ( Official Gazette of Republika Srpska number 9/10 and 126/10) in Article 15, the number 2011 shall be replaced with the number Article 2 This Decision shall come into force on the eighth day following its publication in the Official Gazette of Republika Srpska. UO number: 252/11 December 7, 2011 Banja Luka PRESIDENT OF THE MANAGEMENT BOARD Mirjana Jacimovic

9 Pursuant to Article 86 of the Law on banks of Republika Srpska ( Official Gazette of Republika Srpska number 44/03, 74/04, 116/11 and 5/12), Article 4, 10 and 25 of the Law on Banking Agency of Republika Srpska Revised text ( Official Gazette of Republika Srpska number 67/07 and 40/11), and Article 15, paragraph 1, item 2 of the Statute of the Banking Agency of Republika Srpska ( Official Gazette of Republika Srpska number 67/04), on its session held on December 25, 2012 the Management Board of the Banking Agency of Republika Srpska passed the DECISION ON MODIFICATION TO THE DECISION ON TEMPORARY MEASURES FOR RESCHEDULING LOAN OBLIGATIONS OF PHYSICAL AND LEGAL PERSONS IN BANKS Article 1 In the Decision on temporary measures for rescheduling loan obligations of physical and legal persons in banks ( Official Gazette of Republika Srpska number 9/10, 126/10 and 127/11) in Article 15, the number 2012 shall be replaced with the number Article 2 This Decision shall come into force on the eighth day following its publication in the Official Gazette of Republika Srpska. UO number: 21/12 December 25, 2012 Banja Luka PRESIDENT OF THE MANAGEMENT BOARD Mira Bjelac

10 Pursuant to Article 86 of the Law on banks of Republika Srpska ( Official Gazette of Republika Srpska number 44/03, 74/04, 116/11, 5/12 and 59/13), Article 5, paragraph 1, item e, Articles 20 and 37 of the Law on Banking Agency of Republika Srpska ( Official Gazette of Republika Srpska number 59/13), and Article 17, paragraph 1, item b of the Statute of the Banking Agency of Republika Srpska ( Official Gazette of Republika Srpska number 95/13), on its session held on November 27, 2013 the Management Board of the Banking Agency of Republika Srpska passed the DECISION ON MODIFICATION TO THE DECISION ON TEMPORARY MEASURES FOR RESCHEDULING LOAN OBLIGATIONS OF PHYSICAL AND LEGAL PERSONS IN BANKS Article 1 In the Decision on temporary measures for rescheduling loan obligations of physical and legal persons in banks ( Official Gazette of Republika Srpska number 9/10, 126/10, 127/11 and 123/12) in Article 15, the number 2013 shall be replaced with the number Article 2 This Decision shall come into force on the eighth day following its publication in the Official Gazette of Republika Srpska. UO number: 67/13 November 27, 2013 Banja Luka PRESIDENT OF THE MANAGEMENT BOARD Mira Bjelac