New bank loan repayment moratorium in Romania reportedly agreed upon

An agreement on postponing the bank loan instalments for some categories of debtors was already agreed with the banks, claimed the Social Democrat leader Marcel Ciolacu (PSD).

"There is the option of postponing bank instalments for Romanians. It was discussed with the banks, and an agreement was reached. On Monday, each measure will be detailed, and it will be said how it will be applied," Ciolacu said, Ziarul Financiar reported.

The banks' representatives have not confirmed the existence of an agreement yet.

A similar moratorium was enforced during the pandemic, but at that time, the European Bank Authority waived for all banks in Europe the requirements to set aside provisions for the loans under the moratorium, which is not the case now.

At present, given that there is no longer any EBA guidance, banks may have to make provisions for the instalments deferred, which would deteriorate their balance sheet and require additional capital from parent banks.

(Photo source: Facebook/Marcel Ciolacu)