Frequently Asked Questions
What is a deferred payment?
Deferred payment period is the period during the loan, when the borrower is not obliged to pay the annuity. It is the waiting period before the borrower starts making fixed monthly payments
Deferred annuity servicing is a measure implemented for the first time in the banking sector of Macedonia. Delayed servicing is not a novelty in banking practices around the world, even for Balkan countries that have applied this measure under certain conditions in order to support the state in emergency situations. And, in the time of Covid-19, most banks in the region and beyond allowed deferred payment of up to 3 months.
The deferred payment of the annuities of the citizens and companies through the bank's business decision in our case is made for 6 months. This is a period for which the citizens and companies need liquidity that the bank will provide with a parallel extension of the repayment period of 6 months, in order for the monthly annuity of the used funds to remain approximately the same and not to be a serious burden in the future.
Deferred payment means a period in which interest is accrued on current terms, and there is no other practice for banks as part of the relevant sector unless it is subsidized by a third party.
The delay measure is intended for those people who unfortunately face reduced or abolished inflows during the crisis period, and who are therefore unable to normally service their obligations to the bank.
Customers who have the capacity to smoothly fulfill their obligations, of course, should continue with the same and reject the offer with the measure.
Difference between grace period and delayed repayment?
Grace period is the period in which interest is serviced on a monthly basis as opposed to deferred repayments where the client has no monthly outflows to the bank.
Grace period is a period where there is no displacement in the final maturity of the loan and to a greater extent affects the amount of the annuity, while deferred payment adds a number of months into the future, beyond the original final maturity in order to keep the subject's burden stable and within its capacities.
Can you make a small clarification about the interest for that grace period of 6 months. Since the monthly annuity is already composed of the main part and the interest on which the additional interest will be calculated for this 6-month period, does this mean that we will all have an increase of the remaining part for payment.
For the entire duration of the grace period, the Bank will calculate interest at the interest rate provided for in the Credit Agreement, i.e. there will be no additional interest, only regular interest. After the expiry of the 6-month grace period, interest accrued on the grace period will be distributed (added) to the credit balance of the loan and will be equally distributed to the annuities under the new amortization plan. Yes, this means that there would be a slight increase in the annuities for the remainder of the repayment, but at the same time the loan repayment deadline would be prolonged, allowing the annuity increase to be minimal.
My loan has a balance of MKD 600,000.00 with an interest rate of 6% monthly interest currently with 84 months remaining?
The amount of interest that will be calculated monthly is 3,000.00 MKD visible from your Amortization Plan as well, the total amount for 6 months will be 18,000.00 MKD, which will be spread over the remaining 84 months or 215 MKD per month. You will not pay a 6 month annuity in the amount of MKD 8,765.00 or for a 6 months 52,590,00 MKD and therefore you will pay 215 MKD higher annuity in the future.
Does it apply to all products?
If the client has more credit borrowing, (if he/she uses more credit products) he/she acquires the right to defer installments/interest for each product.
How long does the measure last? What obligations does it begin with and which ends with it?
The delay of the measure starts with the calculation of the annuities from 01.03.2020 and lasts until 31.08.2020. This means that by using this measure you are entitled to deferred payment on the first annuity of 31.03.2020 and last 31.08.2020. The first next annuity after deferred service is due on September 30, 2020.
Will the loans raised in March and subsequent months be put on hold?
Loans raised in March 2020 are not included in the offer, taking into account the criteria provided by the competent authorities. However, the Bank will shortly offer measures for these loans (for individuals who will need relief), which we will further inform.
Will permanent orders be put on hold? What about Administrative Bans?
A: The permanent order will remain active, but due to deferred payment you will not have any outstanding debt for which the permanent order would transfer funds to the credit party. This is for the reason that you are not deactivated and you will need to resubmit an activation request. If your loan is repaid with an administrative ban, please notify your employer that it should put it on hold during the grace period. The Bank will make an effort to notify the larger companies and institutions as soon as possible of the clients that will use the measure but not before the deadline for acceptance or rejection of the bid on 05.04.2020 in order to have a final number of clients and their identification.
Does it apply to retirees?
The offer is valid for all clients that are classified in risk category A, B or C and do not have the status of suspicious and disputable claims (dysfunctional), i.e. in their previous work with the Bank they did not delay more than 90 days in repayment. Including retirees, starting from the fact that everyone is or can be directly or indirectly affected. This is stated in the official statement and we through our branches will make an effort to directly contact all retirees in order to explain more closely and make calculations given the limited channels of communication and thus make sure that everyone understands the measure.