The FSC announced on March 2 the availability of the current loan maturity extension and deferment of principal and interest payment programs for SMEs and small merchants until the end of September this year. The decision for a six-month extension of the lending support for SMEs and small merchants comes amid the continuing social distancing measures and pandemic-inflicted hardship imposed on businesses. As such, qualified business entities may apply or reapply for lending support according to the same standards that were announced back in March 2020.
Along with the six-month extension of the lending support, the FSC also announced measures to help ease payment burdens once the deferral period expires from October 1. For those who sign up for a consulting service, financial institutions will provide consulting on the most appropriate way to make long-term, installment payments possible based on different financial situations in which borrowers find themselves.
At the same time, financial institutions will be required to closely monitor any changes in borrowers’ payment capabilities and provide assistance immediately when deemed necessary.
* Please refer to the attached PDF for details.