In accordance with the Decision on interim measures to mitigate negative adverse effects of pandemic of the new corona virus on financial system after mitigation measures for the protection of population from infectious diseases (“Official Gazette of Montenegro “ No. 046/20 on 20^th May 2020), the Bank can approve the moratorium in duration of 90 days to a loan user, natural person and legal entity if they submit a valid documented proof that the new corona pandemic has had the adverse effect on their financial conditions

Loan users, that have up to this date applied for the moratorium in accordance with the previous Decision on interim measures, have the right to use that moratorium until it expires, that is, up to 90 days and only after the expiration of that period they can apply for a new moratorium.

Precondition that must be fulfilled to apply for a new moratorium is that a loan user on the date 31^st December 2019, had no delay in repayment of a loan longer than 90 days, that loan on that date was not classified as non-performing, as well as that loan was not restructured in the year 2020.

The loan user can apply for the moratorium in the Bank’s head office at the competent loan officer by filling out the application for the moratorium and by submitting relevant proofs that his financial position is jeopardized.

The loan user submits its request on the e-mail address info@adriaticbank.com or by sending mail on the address of the Bank: Marka Miljanova street no. 46, Podgorica. For further explanations you can contact bank on the phone number +382 (0)20 680 951.

Natural persons

The Bank can approve the moratorium to a loan user – natural person if he/she can document that new corona virus has had the adverse effect on his/her financial position or position of co-debtor of the loan.

The following is condidered to be a valid proof that the financial position of the loan user or loan co-debtor is jeopardized:

• Confirmation on termination of working contract issued by the employer
• Confirmation on salary, or turnover through account, that documents reduction of income compared to the moment of loan approval
• Sumbitted payment sheets
• Other evidence that documents reduction/cease of other incomes that were taken as relevant at the moment of a loan approval (Termination of contract on lease etc.).

Note: In order for the Bank to consider the moratorium approval, monthly obligations must be higher than 50 % of documented monthly income which is reduced due to the adverse effect of the new corona virus (DSTI higher than 50 %)

Legal Entities

The Bank can approve the moratorium to a legal entity that has been adversely affected as a consequence of the new COVID-19 pandemic in the sense of the decrease of revenues/turnover, which will, according to the Bank’s evaluation, materially affect monetary flows of a legal entity and its possibility of regular payment of obligations.

The following will be considered as a valid proof of a legal entity’s financial vulnerability:

• Comparative interim financial reports (for instance, on 31^st May of the current and previous year),
• Comparison of transactions in comparative periods,
• Proof of cancellation of contracted arrangements,
• Reimbursment of advance payments,
• Contract termination and other relevant documents used by the Bank as the basis for assessing the legal entity’s vulnerability.

Client’s request must contain a brief explanation of the adverse effects on its business operations.

After receiving the request and other relevant supporting documents, the Bank shall make a decision on the moratorium approval within 8 working days.

The Bank keeps the right to assess every individual request and reasons for the moratorium introduction, but also to reject every individual request for the moratorium approval, especially if it finds that the moratorium introduction wouldn’t be purposeful or that the resolution of the jeopardized financial situation of a loan used could be better resolved through some other measured of reconstructuring.

Additionally, the Bank keeps the right to request additional documents with the aim of defining adequate assessment of the adverse affect that the new corona virus has had on the client’s financial state.

After receiving the notice from the Bank on the moratorium approval, a loan user- natural person, submits the notice on the approval to the employer or another person through whom a loan is repayed, followed by the corresponding resolution from the bank, in the manner prescribed by the employer.

We emphasize that the Bank’s professional services will approach the execution of all requests for the moratorium extension sistematically and with all due care in order to reach acceptable solution for both the Client and the Bank.

Following the moratorium approval, and during its duration, the Bank will not:

• Calculate penalty interest on overdue loan receivables,
• Initiate the execution procedure, that is, enforced collection,
• Undertake other legal actions with the aim of collecting receivables,
• Change the conditions of a loan agreement,
• Calculate the day of delay.

During the moratorium duration, the Bank will:

• Calculate regular (contracted) interest, but will not collect it,
• Perform calculations in accordance with the conditions stipulated in a loan agreement,
• Capitalize the accrued regular interest at the end of the moratorium period (the interest will be attributed to the debt and distributed evenly over the remaining term until the loan maturity),
• extend the maturity period upon the moratorium expiration for a period equivalent to the period during which the client exercised the right to the moratorium.

Note: It is not obligatory to make an annex to the loan agreement on the introduction of the moratorium. Moreover, all constituted instruments that serve as a means of securing the Bank’s claims on placements that are the subject of the moratorium, remain in force and the Bank’s rights in this regard are not diminished by the introduction of the moratorium. Therefore, the Bank is not obliged to conclude new contracts or annex existing contracts for the means of securing, but it is considered that the same instruments continue to secure receivables and in accordance with the changed repayment period resulting from the moratorium introduction.