FCA urges institutions to be flexible with borrowers
The Farm Credit Administration this week urged member institutions to be flexible with borrowers during the coronavirus crisis.
“FCA regulations and the solid financial position of system institutions give the institutions considerable flexibility to provide relief to borrowers affected by COVID-19,” says Glen R. Smith, FCA board chairman and CEO. “We encourage institutions to use this flexibility to work with borrowers to lessen any stress and financial burden related to the disease and efforts to contain it.”
FCA said system institutions can help alleviate stress for borrowers affected by COVID-19 in several ways:
▪ Extending the terms of loan repayments.
▪ Restructuring borrowers’ debt obligations.
▪ Easing some loan documentation or credit-extension terms for new loans to certain borrowers.
FCA also said that the virus may impair the institutions’ ability to comply in a timely way with regulatory or reporting requirements and that FCA may be able to grant temporary relief in some circumstances that would alleviate these challenges without weakening safety and soundness.
Smith also said FCA extended its telework period for employees through April 10. It has also suspended all business travel and in-person training through April 30, but said, “Our examiners are monitoring system institutions closely as they make adjustments to their operations to respond to challenges posed by the pandemic.”