Hassle-free mortgage deferrals for Czech borrowers
People and companies in the Czech Republic will most likely be able to defer mortgage payments for up to six months. The government approved a proposal by the finance ministry that would allow people to choose whether to stop payments for three or for six months. Banks would not investigate the requests, which would have to state that they were because of the pandemic, nor would they charge any fees or penalties. Retail clients would then be freed from paying both the principal and the interest on their mortgage loans and banks during the three or six-month period, but companies would still have to pay the interest portion of the monthly installment. The mortgage loan period would be automatically extended by the same period of time. Clients would not be damaging their creditworthiness if they decide to use this option, according to the finance ministry.