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COVID-19 - Impact on Financial Sector - 1st April 2020

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01/04/2020

Please find below a summary of COVID-19 developments relevant to our clients; these alerts are dedicated to following up on the financial  regulators’ responses to the crisis. We have also created a COVID-19 Resource Center to offer legal and business insights as this crisis continues to evolve. We wish you and your loved ones well.

If you have any questions please feel free to contact: 

Tom Van Dyck
+32 475 90 90 91
t.vandyck@liedekerke.com

Freya Mareels 
+32 475 25 11 50
f.mareels@liedekerke.com

Wim Dedecker
+32 491 36 03 99
w.dedecker@liedekerke.com

 

27/03/2020

Law of 27 March 2020 authorising the King to provide a State guarantee for certain credits in the fight against the effects of the coronavirus and amending the Law of 25 April 2014 on the status and supervision of credit institutions and stockbroking firms

 

This Law, which has been published in the Belgian Official Gazette on 31 March 2020, empowers the King to grant a State guarantee for certain credits granted by credit institutions under Belgian law or by branches in Belgium of credit institutions under foreign law.

In addition, the King is given the power to determine the conditions under which these State guarantees are granted to institutions. The total amount of the guaranteed credits may not exceed the total amount of EUR 50 billion.

31/03/2020

 

Publication of a Mortgage Loan Deferral Charter and a Corporate Loan Deferral Charter

 

Following the agreement reached between the Minister of Finance Alexander De Croo, the National Bank of Belgium and Febelfin on 22 March 2020 to support people financially if they would get into trouble due to the corona crisis, a Mortgage Loan Deferral Charter and a Corporate Loan Deferral Charter have been developed to set out the conditions to be fulfilled in order to obtain a deferral of payment for a mortgage or corporate loan. These Charters set out: 

  • What deferred payment exactly entails;
  • Who is eligible to apply for a deferral of payment and, for corporate loans, which loans are eligible for a deferral of payment;
  • Which forms the deferral of payment may take (only for mortgage loans);
  • When a deferral of payment can be requested and until when the deferral of payment can be taken up.
31/03/2020

Febelfin Q&A about payment delay mortgage loan individuals

This Q&A by Febelfin aims to answer certain questions regarding the Belgian financial support system put in place for individuals if they were to run into problems due to the corona crisis. All details on the deferral of certain loans can be found in the Mortgage Loan Deferral Charter and the Corporate Loan Deferral Charter.

31/03/2020

 

EBA provides additional clarity on measures to mitigate the impact of COVID-19 on the EU banking sector

 

In order to further mitigate the impact of COVID-19 on the EU banking sector, EBA has undertaken the following actions:

  • EBA has urged all banks to refrain from dividend distribution or share buybacks and to review their remuneration policies in light of the current economic situation to ensure that they are consistent with and promote sound and effective risk management. In particular, variable remunerations should be set at a conservative level;
  • EBA has urged competent and resolution authorities to apply a one-month flexibility for reports due between March and the end of May 2020 (with certain exceptions) and to apply flexibility in assessing institutions’ compliance with the publication deadlines for their Pillar 3 reports;
  • EBA has called upon NCAs to support financial institutions’ ongoing efforts by sharing information on emerging ML/TF risks.
31/03/2020

 

ESMA provides clarifications for best execution reports under MiFID II

 

ESMA has published a Public Statement to clarify certain issues regarding the publication of the general best execution reports required under RTS 27 and 28 MiFID II. More precisely, ESMA recommends NCAs to take into account the current COVID-19 pandemic by considering the possibility that: 

  • Execution venues may be unable to publish RTS 27 reports by 31 March 2020 and may only be able to publish them as soon as reasonably practicable after that date. It should be noted that these publications must take place no later than by the following reporting deadline (being 30 June 2020); and
  • Firms may only be able to publish the RTS 28 reports, which are due by 30 April 2020, on or before 30 June 2020.


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