The National Bank’s board has adopted a resolution establishing a special procedure for classifying loans issued for refinancing businesses operating in the garment sector, the regulator said.

Under the new rules, financial and credit institutions will be allowed to classify such loans as «assets under supervision» while creating reserves to cover potential losses and damages at a rate of 5 percent, provided a number of conditions are met.

For example, the borrower must have been operating for at least one year and must not have any outstanding tax or social insurance payment arrears. The grace period for repayment of the principal amount should not exceed six months. Another mandatory requirement is a thorough analysis of the borrower’s financial condition and the absence of any loan restructuring during the previous year.

The resolution enters into force on the date of its official publication and will remain effective until April 1, 2027.