Central bank allows Romanian lenders to help their clients amid COVID-19 crisis

Romania’s National Bank (BNR) informed the local banks that they will not have to build provisions for the payments delayed or loans restructured by vulnerable customers hit by the effects of the COVID-19 epidemic, and they will also not have to include the delayed payments in the category of overdue payments, Profit.ro reported.

Under existing regulations, delays of up to three months are accepted with no provision needed.

BNR said that it also seeks solutions so that local banks can grant similar allowances to companies.

Separately, BNR announced that it prepared to inject liquidity in the market including under a repo operation expected this week. Moreover, in order to facilitate the Government financing, BNR will ask permission from the European Central Bank to increase the cap on the share of Treasury papers a bank can hold in its portfolio (from the current level of 20%). The Treasury failed to raise any funds this week.

(Photo source: Shutterstock)