EU banking watchdog sets out virus-hit loan relief
LONDON (Reuters) - The European Union's banking watchdog published guidance on Thursday to help banks avoid having to step up provisioning for loans to companies temporarily hit by the coronavirus crisis.
Several EU countries have introduced stop-gap moratoriums such as repayment holidays, state guarantees and other relief measures for companies and individuals as large parts of the economy are in lockdown and unemployment rockets.
"The EBA sees the payment moratoria as effective tools to address short-term liquidity difficulties caused by the limited or suspended operation of many businesses and individuals," the European Banking Authority said in a statement.
(Reporting by Huw Jones; Editing by Alison Williams)
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