New rules for calculating default in settling obligations to credit institutions do not affect the default interest rate calculation
22/03/2023
The application of the provisions of the Decision on Capital Adequacy of Credit institutions concerning the conditions and rules for classifying debtors into default status, which introduces special rules for calculating and counting a debtor's default days, will begin on 1 April 2023.
The application of new rules for debtors entering default status will have an impact on the regulatory treatment of certain exposures. In accordance with the Law on Obligations, the default days in the repayment of obligations to banks and the default interest rate will be carried the same as before the mentioned regulation's application.
The CBCG conducted several analyses to assess the credit institutions’ readiness to start applying the new regulation and an analysis of the impact on the non-performing loans level. Based on the credit institutions’ data, the expected application of the new rules on the non-performing loans level will not be materially significant.
We remind you that the Decision on Capital Adequacy of Credit Institutions is a part of the new regulatory framework that is in effect from 1 January 2022 and is fully aligned with the relevant acquis communautaire.