Factsheet for measure
RO-2020-18/535
–
Updated
– measures in Romania
Temporary suspension of payment obligations for loans
Suspendare temoporara a platii ratelor bancare
Background information
The Romanian Government introduced several measures to mitigate the negative effects of the
COVID–19 outbreak, which lead to certain debtors being negatively affected, small and medium-sized enterprises and other legal entities facing a severe lack of liquidity. In this context and in order to limit the extent of the economic hardships, the Government allows the entities that are beneficiaries of loans from financial institutions to suspend their payment obligations for up to 9 months, but no longer than 31 December 2020.
Content of measure
The Government allows the entities that are beneficiaries of loans from financial institutions to suspend their payment obligations for up to 9 months, but no longer than 31 December 2020. Any individual or legal entity, be they persons, enterprises or other forms of activity (self-employed persons, family businesses) who have acquired a loan or a leasing qualify for a temporary suspension. The debtors must be in good standing, having settled their financial obligations to the date before making the request for suspension. A sworn statement must be provided by the debtors, attesting the fact that their activity has been affected by the pandemic. The legal entities must provide proof, in the form of certificates for emergency situations, obtained from the Ministry of Economy, Energy and Business. The precondition is for the entity asking for suspension to be directly or indirectly affected by the pandemic.
The months of suspension are to be added to the initial credit period, and the total credit period that result cannot exceed the sum of the initial credit period and the months of suspension.
Updates
The following updates to this measure have been made after it came into effect.
|
30 December 2020
|
The Emergency Government Ordinance no. 227/2020 extended the suspension effects of the moratorium and the deadlines applicable to the debtors eligible to benefit from the moratorium on loan payments in the context of the COVID-19 pandemic.
To benefit from the postponement of payments, the debtors must request this facility from the creditor no later than 15 March 2021, so that the creditor can analyze and issue the decision until 31 March 2021.
In addition, the new GEO provides that the measure applies to debtors which did not request the postponement until 15 June 2020 or have been granted postponement of payments under GEO 37/2020 or benefited from a non-legislative moratorium.
|
Use of measure
Romanian banks have approximately 1,5 million retail clients and 100.000 corporate costumers. Approximately 10% (150.000 retail customers and 10.000 corporate customers) have applied for the suspension of payments until 12th April 2020, but the number will probably increase, since the measure applies until mid-May 2020.
Target groups
Actors and funding
|
Actors
|
Funding
|
National government
Company / Companies
|
No special funding required
|
Social partners
Social partners' role in
designing the measure
and form of involvement:
|
Trade unions
|
Employers' organisations
|
|
Role
|
No involvement
|
No involvement
|
|
Form
|
Not applicable
|
Not applicable
|
Social partners' role in the
implementation, monitoring and assessment phase:
-
Unknown
-
Main level of involvement: Unknown
Involvement
Unknown.
Views and reactions
Starting on 26th March, the Government has suspended the social dialogue for the period of state of emergency.
Sources
