Featured Product

    HM Treasury Allows Extended Repayment Delay Under COVID Loan Scheme

    February 08, 2021

    HM Treasury announced that borrowers that avail the government-backed Bounce Back Loan Scheme, or BBLS, to get through the COVID-19 crisis will now have the option to tailor repayments according to their individual circumstances. HM Treasury highlighted that the "Pay as You Grow" repayment flexibilities now include the option to delay all repayments for a further six months; this means that businesses can choose to make no payments on their loans until 18 months after they originally took the loans. The option to pause repayments will now be available to all from their first repayment, rather than after six repayments have been made.

    Pay as You Grow will also enable borrowers to extend the length of their loans from six to ten years and make interest-only payments for six months, to tailor their repayment schedule to suit their individual circumstances. These Pay as You Grow options will be available to more than 1.4 million businesses that took nearly GBP 45 billion through the Bounce Back Loan Scheme. This is in addition to the government covering the costs of interest for the first year of the loan. Lenders will proactively and directly inform the customers of Pay as You Grow, though borrowers should only expect correspondence three months before the first repayments are due. The government has made clear that lenders are expected to offer Pay as You Grow options to all borrowers under the Bounce Back Loan Scheme. Moreover, the conduct rules of FCA require lenders to show due consideration and appropriate forbearance to borrowers in difficulty.

     

    Related Link: News Release

     

    Keywords: Europe, UK, Banking, COVID-19, BBLS, Bounce Back Loan Scheme, Credit Risk, Pay as You Grow, Loan Repayment, HM Treasury

    Related Articles
    News

    BIS and Central Banks Experiment with GenAI to Assess Climate Risks

    A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe

    March 20, 2024 WebPage Regulatory News
    News

    Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures

    Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.

    March 18, 2024 WebPage Regulatory News
    News

    Singapore to Mandate Climate Disclosures from FY2025

    Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies

    March 18, 2024 WebPage Regulatory News
    News

    SEC Finalizes Climate-Related Disclosures Rule

    The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.

    March 07, 2024 WebPage Regulatory News
    News

    EBA Proposes Standards Related to Standardized Credit Risk Approach

    The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU

    March 05, 2024 WebPage Regulatory News
    News

    US Regulators Release Stress Test Scenarios for Banks

    The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).

    February 28, 2024 WebPage Regulatory News
    News

    Asian Governments Aim for Interoperability in AI Governance Frameworks

    The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.

    February 28, 2024 WebPage Regulatory News
    News

    EBA Proposes Operational Risk Standards Under Final Basel III Package

    The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.

    February 26, 2024 WebPage Regulatory News
    News

    EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS

    The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.

    February 23, 2024 WebPage Regulatory News
    News

    ECB to Expand Climate Change Work in 2024-2025

    Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.

    February 23, 2024 WebPage Regulatory News
    RESULTS 1 - 10 OF 8957