The outline for deferring loans will also apply to credit card companies Israel today

Intended for private customers and businesses with a turnover of up to NIS 25 million • The Bank of Israel emphasizes: This involves cost • The Supervisor of Banks: "We will continue the assistance mission"

In line with borrowers and businesses: The

credit companies have adopted an outline for deferring loan payments, the Bank of Israel Supervisor of Banks announced yesterday (Thursday).

Archive photo: GPO

Following the consequences of the Corona crisis and the closure imposed by the Israeli government, customers of banks and credit card companies have encountered financial difficulties, which are reflected, among other things, in a decline in revenues that leads to difficulties in repaying loans taken before the crisis.

To help customers in the financial system, a voluntary outline has been formulated to defer loan payments, which has been adopted by all credit card companies.

The outline will take effect no later than October 16.

This outline is in addition to the Supervisor's announcement of the extension of the comprehensive outline for deferring loan payments, adopted by the banking system, which allows customers to defer loan payments in three operating segments: mortgages, consumer credit and business credit.

With regard to a consumer loan, the loan will be possible up to an amount of NIS 100,000, and the deferral will be made for a period of three months, without the company's discretion.

There is also an option, at the Company's discretion, to further defer three months for these loans (up to six months in total).

The deferral without the Company's discretion is that of the principal component of the loan.

The credit card company may also allow a deferral of interest, in addition to deferring the principal. 

Regarding a business loan, a business with an annual turnover of up to NIS 25 million that was affected by the crisis will be allowed to be postponed for a period of up to three months.

The outline presents the minimum terms in deferring loan payments.

The Bank of Israel would like to emphasize that deferring payments involves cost.

The Supervisor of Banks, Yair Avidan, said: "The formulation of the outline is another milestone in the assistance provided to customers of banks and credit card companies to deal with the consequences of the complex period. We will continue with the assistance mission."