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Canada to phase out treatment of deferred loan, premium payments as performing

TORONTO, Aug 31 (Reuters) - Canada’s financial regulator said on Monday it will begin phasing out the temporary treatment of deferred loan and premium payments as performing, introduced earlier this year in response to the coronavirus pandemic.

Loan and premium payments granted deferrals by banks and insurers before Monday will remain eligible for the special capital treatment for six months, while those approved between Aug. 30 and Sept. 30 will be treated as performing for three months, the Office of the Superintentent of Financial Institutions said in a statement.

Loan deferrals granted after Sept. 30 will not be subject to the special treatment, it said. (Reporting By Nichola Saminather)