- Payment reliefs will be granted for a specified period of time, between 6 and 12 months, depending on the type of loan and the nature of the obligor
- The moratoria can be applied for up to July 31
The Andorran Banks have reached a sector-wide agreement that will allow businesses and families which have been affected by the coronavirus crisis to postpone the repayment of their credit obligations. This is a private initiative launched by the Andorran banks and approved by the Andorran Banking Association’s General Assembly, in order to address situations which are not covered by the public payment moratoria or which require a supplement of relief measures to provide tailored answers from a social and economic perspective.
In the case of private individuals, the postponement will be granted for a period of 6 months for personal loans and 12 months for mortgage loans. For businesses the postponement will be applied for a period of 12 months.
The moratorium can be requested at the banks before July 31, by applicants meeting a number of set requirements.
This sector-wide moratoria scheme supplements the scope of the legislative moratoria approved by the Andorran Government on April 18, as well as that of the financing line program offered to businesses and private individuals facing liquidity challenges.
This agreement also foresees that those who have benefitted from the response measures adopted by the Government, or who no longer benefit from them for not meeting the requirements, can apply for the private moratoria so long as they fulfil the necessary requirements.
The legislative and non-legislative moratoria cannot be applied simultaneously.
In the words of the General Director at Andorran Banking, Esther Puigcercós “this private initiative launched by the banks is in addition to all the other measures adopted with the aim of supporting businesses and families in overcoming this exceptional period caused by Covid-19, and proves the commitment the banks have towards the population of our country”. The Andorran banks are fully committed to providing a secure and trustworthy environment as well as to an economic recovery.