Bank of Israel extends the outline of freezing of bank loan payments until the end of 2020

The Bank of Israel extends the outline of freezing of bank loan payments received in May due to the Corona crisis. The Supervisor of Banks announced today (Monday) the extension of the possibility of freezing loans, when according to the new outline it will be possible to apply for a freeze for all types of loans such as consumer loans, mortgages or business loans, until the end of October.
The significant expansion of the mortgage has been made in the field of mortgages: It has been established that in this area, customers who have already requested a mortgage freeze will be able to extend the maturity until the end of 2020.
With regard to consumer loans, the freeze period will be extended from 3 to 6 months, which is at the discretion of the bank, but only at the customer's request. This, while according to the previous outline, a consumer loan freeze was made automatically for a period of 3 months, and its extension to 6 months was conditional on the bank's approval. With regard to business credit, there has been no change, and a loan can be frozen for a period of up to 6 months, and subject to the Bank's discretion.
 As soon as the crisis broke out, banks were allowed to freeze loan repayments, and in May the Bank of Israel even issued an official outline on the matter, enabling banks to carry out the freeze without making an accounting provision for any frozen loan. Since the beginning of the crisis, the banks have frozen 533,000 loans, with total frozen payments reaching NIS 7 billion.
The Governor of the Bank of Israel, Prof. Amir Yaron, stated: "Extending the outline for deferring loans allows for additional breathing space and will make it easier for households and businesses affected to get through the crisis. However, it is worth remembering that credit is different from repayment "The expansion of the loan deferral scheme coincides with the government assistance program, which is intended to provide maximum security for those affected."
Banking Supervisor Yair Avidan: "We are all witnessing that many households and businesses continue to be affected by the consequences of the Corona crisis and therefore these clients should continue to be assisted, while managing sound and responsible risks. The resilience of households. "