Lithuanian parliament legislates ‘loan breaks’ for debtors affected by coronavirus

People with loans who lose at least a third of their income due to the  coronavirus   crisis will be able to defer their loan payments, the Lithuanian parliament has decided.

Under the law, banks and other credit institutions will have to defer loan payments for at least three months, if people have lost more than a third of their income due to reasons beyond their control and request payment deferral.

 Read more:  Lithuanian economy could contract up to 2.8 percent, finance minister warns   

In a vote on Tuesday, the bill was backed by 102 lawmakers.

The government had proposed that banks give a loan payment break to people who have lost most or all of their income due to the coronavirus crisis, but the MPs decided to give less room for interpretation of the term “most”.

Currently, loan payments can be deferred due to divorce, death of the spouse, losing a job or becoming incapacitated to work.

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