Corporate overdraft under the moratorium

The moratorium on loan repayment is applicable to overdraft products as well, but only to the amounts borrowed before 18 March 2020 midnight.

The credit holiday does not apply to:

• credit not used before 18 March, midnight, and
• any amounts borrowed after 18 March, midnight.

How the moratorium works in the case of corporate overdraft products

If you did not owe any debt under your overdraft facility on 18 March 2020, your overdraft facility continues to function like before.

If you owed any amount of debt under your overdraft facility on 18 March 2020, you need to know the following:

1. The amount borrowed under the overdraft facility (to which the moratorium applies) before 18 March 2020, midnight is booked to a separate, special-purpose account. Interest on this amount will also be booked to this account. Interest rate will be equal to that applicable to your overdraft facility.
2. Any amount credited to your bank account will not automatically reduce the debt covered by the moratorium. You, however, have the option to pay or transfer funds to this special-purpose bank account where the debt covered by the moratorium is held. By doing so, you reduce your debt and we will increase the overdraft facility available to you by the amount paid. 
3. The balance of the segregated account, minus any prepayment, will be added back to your overdraft facility on 4 January 2021, after the moratorium expires (or at a later date, as appropriate, if the moratorium is extended).
4. We will inform you of the account number and balance of your special-purpose bank account on a monthly basis, in the same manner as your monthly statements are received, so that you will be able to keep track of your debt.

How will the technical settings for the moratorium be made, and what does it mean for me?

After some preparatory work on the bank’s systems, technical settings are expected to be made by the end of April 2020. 

It is important to remember that in order to comply with the relevant legal provisions¹, any debt owed under the overdraft facility at 18 March 2020, midnight, will be booked to the special-purpose account, irrespective of any payments made to your bank account in the time since that date (between 19 March 2020 and the making of the technical settings) to reduce your debt. 

Any such payment will therefore credited to your bank account, and you will need to instruct the Bank separately to transfer them to the special-purpose account, or submit a statement on waving the moratorium. Scroll down to find information about submitting a statement.

If you avail yourself of the moratorium, the number of equal monthly instalments to be repaid and therefore the amount of those instalments will be determined by the original due date of the overdraft facility as follows:

• If the original due date of your overdraft facility was before 31 December 2020, it is extended automatically by the power of the relevant legal provisions¹ to the date of expiry of the moratorium (31 December 2020) + 288 days (the length of the moratorium). Example: amounts borrowed under an overdraft facility that originally would have been due on 6 May 2020 or 20 October 2020 would both have a maturity date of 15 October 2021.
• If the original due date of your overdraft facility was after 31 December 2020, it is extended automatically by the relevant legal provisions¹ by the length of the moratorium, i.e. by adding 288 days to the original due date. Example: a contract with an original due date of 18 February 2021 would have a new due date of 3 December 2021, while a contract with an original due date of 1 April 2021 would have a new due date of 14 January 2022.
• If you have an overdraft taken out on your current account on an indefinite basis, your overdraft facility still does not have a pre-defined maturity date that would be modified. The maturity date continues to be determined by the terms of the contract concluded for an indefinite period. The Bank allows any amount covered by the payment moratorium – i.e. interest accrued up to 31 December 2020, plus any fees – to be paid back in interest-free instalments over 288 days (the period of the payment moratorium), starting from 4 January 2021, without a specific amendment to the contract, as permitted by law. Each monthly instalment is due on the 4th of the month.

Here is how the maturity of your overdraft facility is extended if you opted out of the payment moratorium after 27 April 2020:

The term of the overdraft facility covered by the payment moratorium is extended, by action of the law, by a period equal to the length of time the moratorium applied to it. It should be noted, however, that the length of the term also depends on when the statement on opting out of the moratorium is made:

• If you make your opt-out statement regarding the payment moratorium prior to the original maturity date of your credit line agreement, your new maturity date will be as follows:
  • a.    original maturity date + the length of time spent under the payment moratorium
• If you make your opt-out statement regarding the payment moratorium after the original maturity date of your credit line agreement, your new maturity date will be as follows:
  • a.    date of statement + the length of time spent under the payment moratorium 

Submitting a statement on waving the moratorium:

If you have the CIB Bank mobile application or can access CIB Bank Online or CIB Internet Bank, and you are representative of the company with single signatory right, please click here to indicate that you wish to make a payment.

• Unfortunately this page does not work in Internet Explorer, so please use Google Chrome, Edge or Firefox. 
• If you already submitted a waiver concerning you’re another loan or leasing product, it will not be displayed on the web page for submitting waivers. It is recorded in our systems, however, and therefore you only need to make a statement about any products that were not included in any of your previous statements.
• Your statement will result in the restoration of your original overdraft facility, which you will be able to use as before. Additionally, however, you will also need to pay the pro rata interest accrued on the special-purpose account during the moratorium period.
• Pro rata interest is deducted automatically by the Bank at the time of leaving the moratorium. It does not require your attention other than making sure that sufficient funds are available. 

If your financial situation permits and you are in a position to do so, the opt-out options described above are worth considering for the following reasons:

• You accrue interest on the overdraft debt covered by the moratorium on an ongoing basis. As a result, you may incur high interest obligations by the end of the moratorium period (31 December 2020), which you will need to prepay in equal monthly instalments after the moratorium ends. 
• By opting out or by repaying your full debt, you restore your overdraft facility to its former amount and will be able to use it as before. By making a partial prepayment, you increase the overdraft available to you by the amount prepaid and will be able to continue to use it.