Agreement on temporary payment deferral for companies
In accordance with an agreement between domestic financial undertakings and pension funds, which is part of the response to the economic ramifications of Covid-19, companies can now apply to defer payments on loans for up to six months. Companies should apply to their main bank of business. Other solutions for companies have already been introduced or are in the works.
The parties to the agreement are Landsbankinn, Arion Bank, Íslandsbanki, Kvika, Lykill, the savings banks and pension funds.
The agreement is intended to facilitate quick and coordinated processing of individual cases and contribute to equal standing, both of lenders and companies. The agreement is valid throughout June 2020 and includes extension provisions if circumstances demand. The agreement provides for the following:
Companies can apply to defer payments for up to six months with their main bank of business or savings bank, which assesses whether the company meets the requirements of the agreement.
The agreement is for operating companies and does not extend to holding companies.
To meet the requirements of the agreement, company operations must have been healthy and suffering temporary loss of income leading to operating difficulties. The company may not have been in arrears 60 days or longer at the end of February 2020 and have taken advantage of the government’s solutions in response to the pandemic.
Companies who bank with Landsbankinn can take advantage of various solutions to counteract the impact of Covid-19 on operations. We encourage customers who expect to have difficulties meeting their payment obligations to contact the Bank soonest to go over solutions and receive appropriate advice.
Companies are advised to contact their account manager or liaison, call the Corporate Call Centre (tel. +354 410 5000) or email firstname.lastname@example.org.