The Central Bank of the Republic of San Marino announces the issuance of Circular No. 2023-02, in accordance with Article 5, paragraph 2 of Law No. 132/2023, regarding "Operational Provisions for the Implementation of Article 34 of Law No. 70/2004 (Payment Extension Requests)."
This Circular, issued following the favorable opinion of the Department of Finance and Budget, as stipulated in paragraph 6 of Article 34 of the aforementioned law, includes the following provisions:
- the repayment plan may extend for a maximum duration of 120 months, with a minimum monthly payment of €100. Payments are due on the last day of each month. The repayment plan shall be considered terminated if the borrower fails to make at least three payments, or if they miss a single payment and at least 90 days have passed since the due date of the repayment plan;
- in the event of a lapse in the payment extension, the Revenue Department will initiate enforced collection by calling upon the guarantee, or, in cases where the extension is secured by a mortgage, through property seizure. In such cases, the Revenue Department may explore alternative enforcement procedures by accessing relevant data from public authorities or by directly requesting information from the debtor. If no alternative methods are identified, property seizure will proceed;
- the enforcement of a mortgage guarantee cannot be carried out if it pertains to the residence of the debtor's family unit. However, this protection against enforcement has exceptions: it does not apply when the mortgaged property falls under class A1 or when the debtor or a member of their family owns another property suitable for residence. Additionally, this protection is void if the property has been provided as collateral by a third-party guarantor;
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restructuring may be requested for payment plans with up to two missed installments, as well as for plans that have lapsed due to at least three missed installments or even a single missed installment, provided that in the latter case, at least 90 days have passed since the scheduled payment date. A payment plan may only be restructured once. Moreover, accounts subject to a restructured payment plan cannot be eligible for further installment arrangements;
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the consistency of the payment plans is also relevant for assessing the requirements for granting additional installments.
Please be advised that a summary of the fees for the services provided, including those outlined in Circular No. 2023/02 (Fee Schedule), is available on the Central Bank's website. The Tax Collections Department remains at your disposal to provide any necessary clarification regarding the above.