ZIUOPOK is scheduled to be published in the Official Gazette of the Republic of Slovenia this week and will enter into force one day after its publication.
This measure is intended for the following groups of borrowers: (i) companies established in the Republic of Slovenia, (ii) cooperatives, (iii) natural persons who employ workers in accordance with the provisions of ZDR-1 or self-employed persons who are domiciled or permanent residents in the Republic of Slovenia and (iv) the holders of the agricultural business in accordance with the law governing agriculture (hereinafter referred to as "borrowers").
Payment deferral means:
i) deferred maturity of all obligations under the credit agreement until the end of the deferral period,
ii) the end date of the credit agreement is extended for the duration of the deferred payment (i.e. for a maximum of 1 year),
iii) after the end of the grace period, the next instalment is due in accordance with the provisions of the credit agreement (meaning that payments are only delayed by one year),
iv) the amount of each instalment is calculated in accordance with the credit agreement.
To put it simply, this is a one-year "moratorium", with a one-year extension of the loan repayment period. The deferral of payment will last - irrespective of the date of the application of the borrower - 12 months after the entry into force of the draft law; however, the bank and the borrower may also agree for a more favourable deferral of repayment of the loan for the borrower (e.g. regarding the deferral period, the amount of each instalment, etc.).
The borrower will have to submit the application to the bank within six months of the end of the epidemic at the latest. The content of the application and the obligation of the borrower depend on the size of the borrower and the activity it is undertaking.
Borrowers who are not large companies under the law governing commercial companies and have engaged in a business that has been temporarily banned by government or municipal ordinance (i.e., direct sales to consumers) will not need to attach a description of their business situation due to the effects of the virus nor tax return statements. Additionally, these borrowers will not need to monthly report their business position to the bank.
The law also imposes penalties on banks that fail to fulfil their obligations and borrowers who provide false information, in the following cases: (i) if the bank does not authorize the borrower without reasonable cause to defer payment of the loan contract, it may be fined from 80,000.00 EUR to 500,000.00 EUR, (ii) if the borrower provides false information, he or she may be fined 2,500.00 EUR to 20,000.00 EUR or 25,000.00 EUR to 250,000.00 EUR (depending on the "size" of the borrower).
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