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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case LT-2020-12/368 – measures in Lithuania

Deferral of mortgage payments

Hipotekos mokėjimų atidėjimas

Country Lithuania , applies nationwide
Time period Open ended, started on 17 March 2020
Type Legislations or other statutory regulations
Category Measures to prevent social hardship
– Keeping a safe home
Author Inga Blaziene (Lithuanian Social Research Centre) and Eurofound
Case created 08 April 2020 (updated 05 May 2020)

Background information

Residents who have lost their jobs or at least a third of their usual income and have housing (residential) or consumer loans can ask the lender to defer the repayment installments for three months. This provision is included in new amendments to the laws regulating consumer and housing credit-granting activities, i.e. the Law adding Article 18-1 to Law No. XI-1253 of the Republic of Lithuania on Consumer Credit and the Law amending Article 22 of Law No. XII-2769 of the Republic of Lithuania on Real Estate Related Credit. The aim is to help residents experiencing financial difficulties as a result of the declared quarantine.

Content of measure

Residents who have lost their jobs or at least a third of their usual income and have housing or consumer loans can ask the lender to defer the repayment installments for three months. Until now, the right to defer credit repayments was available only for mortgage borrowers (housing credit holders) in the case of loss of employment, death of a spouse, divorce or incapacity for work, whereas for those with consumer loans the possibility of deferral of credit repayments has not been provided for under the law. During the credit deferral period, borrowers will only have to pay credit interest.

Use of measure

No information yet available.

Target groups

Workers Businesses Citizens
Applies to all workers Does not apply to businesses Applies to all citizens

Actors and funding

Actors Funding
National government
No special funding required

Social partners

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

Trade unions Employers' organisations
Role Informed Informed
Form Not applicable Not applicable

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

  • Unknown
  • Main level of involvement: Unknown

Involvement

N/A

Views and reactions

No information available.

Sources

  • 17 March 2020: LR vartojimo kredito įstatymo Nr. XI-1253 papildymo 18-1 straipsniu (2020-03-17) įstatymas (2020-03-17) (e-seimas.lrs.lt)
  • 17 March 2020: LR su nekilnojamuoju turtu susijusio kredito įstatymo Nr. XII-2769 22 straipsnio pakeitimo įstatymas Nr. XIII-2815 (2020-03-17) (e-seimas.lrs.lt)

Citation

Eurofound (2020), Deferral of mortgage payments, case LT-2020-12/368 (measures in Lithuania), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.