The National Bank of Serbia has adopted a decision on loan repayment facilitation, establishing a standing framework that obliges lenders to apply reasonable measures to ease repayment for borrowers who, during the life of the contract, fall into a difficult financial situation or face other important circumstances beyond their control. The decision was adopted on 11 September 2025 and will apply from 15 October 2025. The framework gives illustrative examples of qualifying circumstances, including job loss, significant income reduction, serious illness, and injury that reduces ability to work, as well as serious family circumstances such as serious illness or death of a spouse or children and certain divorce situations. It also lists examples of potential relief measures, including extending the repayment period, changing contract type, deferring payments, reducing the interest rate, temporary non-repayment, changing the currency of the obligation, partial repayment, partial forgiveness and consolidation of debt, and recognising a repayment delay, while allowing other measures agreed as adequate for the case. For housing loans secured by a mortgage over the borrower’s residence, lenders must, under prescribed conditions, allow non-repayment for at least two months. All lenders must run a single procedure for granting relief and carry out preventive monitoring of individual loans, including contacting borrowers when early signs of repayment problems are identified and informing them of available options. Borrowers may also apply directly, providing relevant circumstances and supporting documentation, with submissions allowed at business premises, by email, or through the lender’s website. Lenders must decide within 30 days and notify the borrower in writing, with an objection route to the lender’s Relief Commission within 10 days and a further right to complain to the National Bank of Serbia following the commission’s decision or if the lender misses the decision deadline.
National Bank of Serbia 2025-10-10
National Bank of Serbia adopts loan repayment facilitation rules requiring lenders to offer relief to borrowers in financial difficulty
The National Bank of Serbia requires lenders to aid borrowers in financial distress due to uncontrollable circumstances, like job loss or illness. The framework suggests extending repayment periods or reducing interest rates. Lenders must monitor loans for early issues and decide on relief applications within 30 days, with an appeal process through the lender's Relief Commission and the National Bank of Serbia.