Almost 29,000 applications for loan moratoria received and EUR 70 million of loans with government guarantee approved by end of February

Banka Slovenije is monitoring the impact of the government emergency measures on the performance of banks and savings banks. Under the law providing for loan moratoria, they had received 28,485 applications from borrowers by the end of February, the majority of which have already been approved. They also approved 1,393 applications from firms for new Covid-related liquidity loans during this period, with a total exposure of EUR 550.6 million. Of that amount, 90 loans in the total amount of EUR 72.6 million were approved under the law that provides for corporate lending backed by a government guarantee.

The law providing for loan moratoria entered into force at the end of March of last year, followed about a month later by the law providing for corporate lending backed by a government guarantee.

According to the figures available by the end of February, the banks had received 28,485 loan moratorium applications from borrowers, of which more than 85% were approved. Around 12% were rejected, and the remainder are pending. By far the largest number of applications were received during the first officially declared epidemic last spring (in April and May), while the second epidemic declaration (in November) brought another bout of applications. The majority of moratorium applications expire in the coming months, and Banka Slovenije is thus expecting most of the increase in credit risk to come during this period.

Table 1: Monthly changes in number of moratorium applications and exposure covered by applications*

Note: A negative number for a particular month is the result of a revision to the data provided by banks, on the grounds of errors identified in reporting. *Under the Emergency Deferral of Borrowers’ Liabilities Act (ZIUOPOK).

Banks and savings banks also approved 1,393 applications from firms for new Covid-related liquidity loans during this period, with a total exposure of EUR 550.6 million. Of these, 90 corporate loans in the total amount of EUR 72.6 million have been approved to date under the government guarantee scheme.

Table 2: Number of applications for new Covid-related liquidity loans, and exposure

Note: A negative number for a particular month is the result of a revision to the data provided by banks, on the grounds of errors identified in reporting. ** Under the Act on Additional Liquidity to the Economy to Mitigate the Effects of the Covid-19 Epidemic (ZDLGPE); data source: SID banka.