Three Banks Announce Loan Payment Deferrals! In response to restrictions on work and business activity introduced due to the coronavirus outbreak, several banks have announced important measures affecting loan repayments. Ziraat Bank, VakıfBank and Halkbank have released statements outlining their actions. Accordingly, loan payments due on March 31, 2020, have been deferred.
Which Banks Announced a 3-Month Loan Payment Deferral?
Ziraat Bank, VakıfBank and Halkbank have announced measures aimed at reducing the economic impact of the coronavirus outbreak on customers and businesses. The banks stated they will provide additional lending capacity to firms and defer loan payments due on March 31, 2020. The actions taken by these three banks are summarized below.
Ziraat Bank Loan Deferral Measures
Due to the global coronavirus pandemic, which has also affected our country significantly, Ziraat Bank is implementing new support steps to help mitigate potential damage to the economy. Within the framework of the Economic Stability Shield, we have activated the following support measures to address possible cash flow difficulties for citizens and businesses during this period.
- Deferral option for installment and interest-principal payments due in March 2020: upon request from firms and individual customers who cannot meet their obligations for the payment date of March 2020, installments may be postponed.
- Support for customers experiencing cash flow disruptions.
- Restructuring of existing loans with grace periods of up to 6 months, and up to 12 months for seasonally affected sectors such as tourism, with suitable maturities.
- For firms that pay their employees’ salaries through our bank, provided they do not reduce employment compared to the end of February 2020,
- An additional credit limit equal to three months of payroll expenses will be made available.
- An increase in general credit limits to provide additional cash credit facilities to cover payments for checks drawn on the bank by credit customers.
- To meet working capital needs, corporate credit card and overdraft (DBS) limits for eligible customers will be increased. These measures are effective immediately.
- Our branches will continue serving customers between 09:00 and 17:00.
Halkbank Loan Deferral Measures
Halkbank announced the following measures related to the coronavirus:
- Firms and individual customers who cannot pay installments, interest or principal due by March 31, 2020, may request and receive a deferral for those payments.
VakıfBank Loan Deferral Measures
VakıfBank announced a set of measures ranging from deferring loan maturities to restructuring existing credits. The decisions taken for the period include the following:
- Flexibility for firms on all loan and installment payments, including interest accruals, that are due on March 31, 2020, extended through June 30, 2020.
- To protect employment, long-term loans equal to three months’ payroll costs will be provided to businesses to meet payroll obligations.
- Restructuring existing loans with payment schedules and grace periods aligned to companies’ cash flow and sector-specific conditions.
- Sectors most affected, including tourism and urban public transportation, may have sector-specific loans restructured with grace periods of up to 12 months.
- Cash management limits will be increased to ease corporate payment obligations such as taxes and social security contributions; payments from these limits can include a 3-month grace period and up to 12-month installment options.
- Business card limits for firms will be increased to expand cost-free procurement capacity.
- The VBanko Check product limits and availability will be expanded to provide banking guarantees in circulation, reducing cash needs and offering low-cost financing.
- Individual loan requests will be handled via VakıfBank Mobile, Internet Banking and Sky Limits to avoid exposing customers to contagion risk.
- Installments and credit card payments for individual customers may be deferred for up to 3 months.
VakıfBank branches will continue to operate and serve customers between 09:00 and 17:00 for transactions that cannot be completed via mobile, internet banking or ATMs.