ABN AMRO will extend its previously announced credit facility payment deferral program to commercial banking clients with a credit facility with a principal and/or a limit of up to €50 million ($55.05 million). Principal and interest payments will not be collected from these clients from April through September.
ABN AMRO defines commercial banking clients as companies with annual turnover of up to €250 million euros ($275.23 million). The program referral program excludes some types of financing, such as commercial finance, leveraged finance for professional investors, club deals and syndicated loans with several financers, and financing for commercial real estate in excess of €2.5 million ($2.75 million). However, ABN AMRO noted that real estate clients with a credit facility of between €2.5 million ($2.75 million) and €50 million ($55.05 million) that lease property to hard-hit sectors are eligible for deferral.
The original program provided a six-month deferral of payment of principal and interest for commercial banking clients with a credit facility of up to €2.5 million ($2.75 million).
“The deferral measure gives clients more scope in their liquidity position. And by automatically implementing it, we can make these arrangements quickly for a large group of businesses,” Daphne de Kluis, CEO of commercial banking at ABN AMRO, said. “We saw last week that this works well and gives clients peace of mind. We have therefore decided to raise the limit to 50 million euros. This will give larger commercial banking clients breathing space too.”
Clients must inform ABN AMRO by March 31 if they do not require payment deferral.
