Banks offer to postpone credit payments

As a measure to support during the contingency

The measure was created to support the people who are most affected by the pandemic situation experienced by the dangerous disease.
A little later, the Association of Banks of Mexico (ABM) was already planning general measures.

In a document sent to the president of the National Banking and Securities Commission (CNBV), Juan Pablo, the body that brings together the 51 commercial banks that operate in the country, explains that the negative impact of the measures that are being taken to avoid its spread is generating in various activities of the economy, such as consumption, services, tourism, restaurants, disruptions in various supply chains, among others; It is imminent that there will be difficulties for companies and individuals to meet their credit commitments on time.

Credit institutions have determined to support their clients

"In this sense, credit institutions have determined to support their clients who are unable to meet their credit commitments, through the implementation of various programs," explains ABM.

The document explains that the support offered by credit institutions, in general terms, will consist of the following measures:

1. In reference to loans for housing construction, as well as individual loans with mortgage guarantee, revolving and non-revolving loans directed to individuals, such as car loans, personal loans, credits payroll credit, credit card and microcredit; As well as for commercial credits directed to legal entities, individuals with business activity in its different modalities, one of the following options will be offered with respect to the entire amount due, including accessories:

A. Partial or total deferral of principal and/or interest payments for up to 4 months with the possibility of extending it to 2 additional months, so that banks can opt for up to six months in the manner that is most convenient for each product or client.
Balances may be frozen without interest charge.

2. In the case of agricultural credits, credit institutions adhere within the scope of their competence to the "Permanent Support Program for Areas Affected by Natural Disasters" of FIRA, which contemplates the use of extensions, rescheduling, restructuring, debt consolidation, and technical assistance for up to six months in municipalities declared a disaster area.

It should be noted that the support offered varies according to the implementation mechanics of each of the credit institutions and the particular conditions of each borrower.