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Factsheet for measure RO-2020-26/927 – measures in Romania

Facilities for payment of rent

Facilități pentru plata chiriei

Country Romania , applies nationwide
Time period Temporary, 21 June 2020 – 31 December 2020
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Deferral of payments or liabilities
Author Victoria Stoiciu (European Institute of Romania)
Measure added 05 July 2020 (updated 22 July 2020)

Background information

The state of emergency, installed for two months, led to financial and economic hardship for many business operators, but also private citizens. Some saw their income diminished due to the imposed lockdown. In order to support the businesses to stay afloat, but also to offer support to persons passing though financial difficulties, the Parliament adopted a law that provides for rent payment facilities for the period related to the state of emergency.

Content of measure

Tenants, economic operators, practitioners of the liberal professions, legal entities under private law, whose activity has been interrupted or whose incomes or revenues have decreased by at least 15% in March 2020 compared to the average of the last calendar year in the period of application of the state of emergency, natural persons economically affected directly or indirectly during the period of application of the state of emergency, may postpone upon request, without payment of interest and penalties, the payment of rent for the use of real estate registered as premises, offices or homes.

The payment of rents to landlords for these categories of tenants shall be made by the competent territorial tax authority, on behalf of the landlords, at the request of the tenants under certain conditions. Tenants will pay subsequently to the tax authority. The tenants can benefit of the rent deferral for the entire state of emergency period, as well as for the month following the one in which the state of emergency ceased, i.e., effectively by 30 June 2020.

Use of measure

There is no estimation on the number of companies/citizens eligible for the facilities provided by the measure. However, we estimate a limited impact when it comes to natural persons, due to the fact that many tenants do not have formal rental contracts, which is a condition for benefiting from the measure.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Applies to all citizens

Actors and funding

Actors Funding
National government
Local funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: N/A

Involvement

The involvement of social partners in the design of this measure is unknown. There is no involvement of social partners taken into account when it comes to implementation and monitoring of the measure.

Views and reactions

No public positions have been expressed by social partners with regard to the measure.

Sources

  • 20 May 2020: LEGE nr. 62 din 20 mai 2020 privind aplicarea unor facilități de la plata chiriei pentru perioada aferentă stării de urgență (legislatie.just.ro)

Citation

Eurofound (2020), Facilities for payment of rent, measure RO-2020-26/927 (measures in Romania), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/RO-2020-26_927.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.