Background information

Given the increasing cost of living and the continuous reporting of households being affected by the ongoing crisis, the sectoral federation/employers' association Febelfin (Belgische Federatie van de Financiële Sector – Fédération belge du Secteur Financier – Belgian Financial sector Federation) has announced that it has discussed with their members (banks and other financial institutions) about possible measures to relieve financial pressure on citizens in need.

Concretely, under specific circumstances, people that are in financial hardship are allowed to postpone the repayment of their mortgage (aside from the interest). This in order to temporarily save a part of their budget to cope with rising costs.

Content of measure

The deferral of repayment can last for a period of up to 12 months. The term of the loan is extended by the number of months of postponement. Additionally, the banks will not charge any file or administrative fees for the extension.

In 2020 and 2021, private individuals were also allowed to temporarily postpone paying capital repayments and interest on their mortgage loans if they got into financial difficulties due to the COVID-19 crisis.

However, there are relatively strict conditions for the deferral that must be met in order to benefit from it.

• The person applying has to have a residence in Belgium.
• On 1 March 2022, the person was not in arrears with the Central Individual Credit Register. Concretely, at the time of the request of the deferment, the person can have no more than €10,000 in bank assets (current, savings and securities accounts) at any bank. Pension savings are not taken into account.
• Another important condition is that the person has an instalment plan running or requested from their energy supplier.

The measure applies to citizens and households, Febelfin and the banks opt for more individualised solutions for enterprises in need.

Use of measure

The uptake of the measure is not estimated or predicted. However, some organisations as well as ministers believe the conditions are too strict for many to make use of the measure.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Does not apply to businesses	People on low incomes

Actors and funding

Actors	Funding
Employers' organisations Company / Companies	No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Unknown	Agreed (outcome) incl. social partner initiative
Form	Not applicable	Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

• Only employers' organisations
• Main level of involvement: Sectoral or branch level

Involvement

Febelfin has discussed and organised the measure together with their members, they are the employers organisation of the banking sector.

Views and reactions

Febelfin believes the measure will alleviate pressure on households in a precarious financial situation.

Sectors and occupations

This case is not occupation-specific.

Sources

• 08 September 2022: Gezinnen in geldnood kunnen één jaar lang alleen intrest op woonkrediet aflossen (www.standaard.be)