For further information,
please contact:
Legal Alerts

BRSA Takes COVID-19 Precautions For Credit Defaults

Legal Alerts
Financial Institutions

Recent Developments

The Banking Regulatory and Supervisory Authority (“BRSA“) has taken certain measures regarding the COVID-19 outbreak with its decision dated March 17, 2020 and no. 8948.


  • The 90 days default period for loans to be classified as non-performing loans (NPL) is now 180 days.
  • For loans that continue to be classified in the second category in spite of the 90-day default, banks will
    continue to set aside provisions in accordance with their own risk models used in the calculation of
    expected loan loss under TFRS 9.
  • Banks will no longer be required to classify, as a category 3 loan, the loans restructured and classified
    as performing loans following the restructuring and where the principal and/or interest payments have
    been overdue for more than 30 days within the one-year monitoring period or restructured once again
    within this period.
  • These measures will be valid until December 31, 2020 and applicable to all loans and other receivables
    recorded in the assets of banks’ balance sheet.



The BRSA aims to soften expected disruptions in economic and commercial activities that COVID-19 might
cause by providing flexibility in financing conditions and credit defaults.