State of emergency due to adverse weather conditions. Option to suspend loan payments for affected individuals. Customers are informed that the Council of Ministers has declared a state of emergency for twelve months due to adverse weather conditions that have affected the provinces of Reggio Emilia, Modena, Bologna, Ferrara, Ravenna, and Forlì-Cesena since May 1, 2023. The intense weather phenomena have caused river overflows, landslides, flooding, and landslides, as well as severe damage to road infrastructure, public and private buildings, hydraulic defense works, and essential service networks. This has resulted in a grave situation endangering people’s safety, loss of lives, and the evacuation of numerous families from their homes. The Head of the Civil Protection Department has issued Ordinance No. 992 of May 8, 2023, containing the initial urgent civil protection measures due to the severe socio-economic distress caused by these events, which are considered force majeure under Article 1218 of the Civil Code. Among these measures, the right has been established for individuals with mortgages related to evacuated or uninhabitable buildings, or for the management of commercial and economic activities, including agricultural activities, conducted in the same buildings. This is provided upon presentation of a self-certification of the damage incurred, in accordance with the decree of the President of the Republic December 28, 2000, No. 445 and subsequent amendments and additions, to request from credit and banking institutions, until the property becomes habitable or suitable for use and in any case not beyond the end of the state of emergency, a suspension of mortgage payments, choosing between the suspension of the entire installment or just the principal portion. Customers who are unfortunately in these conditions of severe difficulty have the option to request a suspension of loan payments within 60 days from the publication of the ordinance in the Official Gazette (May 12, 2023). Below are the details regarding the technical procedures for requesting the suspension of mortgage payments:
- The suspension period also includes any overdue and unpaid installments (provided that the payment delay does not exceed 180 days from the request for suspension);
- The suspension becomes effective within 45 working days from the acceptance of the customer’s request; in the case of overdue and unpaid installments, the suspension applies starting from the first of these installments.
- Any installments that were overdue and paid between the occurrence of the event and the activation of the suspension are not included in the suspension.
- During the suspension period, the agreed contractual interest continues to accrue and can be reimbursed by the customer according to the following methods:
(i) Suspension of only the principal portion. The interest portion is repaid according to the original due dates; (ii) Suspension of amortization for both principal and interest portions, with the contractual interest rate applied to the remaining debt. In this case, the interest accrued during the suspension period is repaid (without additional interest) starting from the payment of the first installment following the resumption of amortization, with periodic payments (additional to the due installments and with the same frequency) for a duration to be determined by the bank based on the information provided by the borrower. Resumption of the amortization process at the end of the suspension period, with a corresponding extension of the repayment plan for a duration equal to the suspension period. The branch staff is available and ready to promptly address any of your requests. The Board of Directors, the Board of Statutory Auditors, and the General Manager, on behalf of all the bank’s employees, express their sincere sympathy for those in this extremely difficult situation. Download the 2023 Moratorium Request Form
