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Draft law for the stay on credit reimbursement
2 min. de citit
In this issue:
A legislative initiative has been drafted with respect to certain stay-measures on credit reimbursement (the “Initiative”), in line with the information available online on the website of the Romanian Senate.
The Initiative been submitted for debate before the Romanian Senate, as first chamber. Following its adoption by the Senate, the Initiative (with, if the case, possible amendments) will be submitted before the Chamber of Deputies, as decisional chamber.
The Initiative applies to both credit institutions and non-banking financial institutions, acting as creditors. With respect to debtors, the Initiative covers, in principle, individuals, authorised individuals (in Romanian, “persoane fizice autorizate”), individual enterprises (in Romanian “întreprinderi individuale”), professionals, family enterprises, as well as small and medium enterprises (SMEs). However, in order to benefit from the rights under the Initiative, debtors must not register payment delays (principal and / or interest) of more than 90 days; and SMEs must meet both of the following conditions: (i) as employer, they are subject to the conditions and provisions related to technical unemployment under GEO no. 30/2020 (establishing certain measures for social security, given the current circumstances); (ii) and they are not in an insolvency estate (as resulting from the information available online on the website of the National Office of the Trade Register) when requesting the stay.
The Initiative provides the debtors’ right to request a stay for their obligation to pay the due credit instalments, together with the ancillary interests and fees, for the loans granted before the entry into force of this law. Therefore, the Initiative does not apply to loans granted after its entry into force.
The period of this stay is until 30 September 2020 and triggers the corresponding extension of the maturity for the impacted loans (to be calculated as of the date when the stay request is communicated to the creditors).
Debtors that want to benefit from the stay and meet the above conditions must send a request to the creditors in this respect, via mail or e-mail, before the end of the state of emergency on the Romanian territory.
In addition, the Initiative provides that non-banking financial institutions (IFNs) which register financial difficulties following the stay process, can benefit from loans as per GEO no. 29/2020 on certain economic and fiscal measures applicable to SMEs.