Romania's Govt. passes fiscal amnesty bill to help debtors pay EUR 7.7 bln to budget

Romania's Government passed the fiscal amnesty bill (the ordinance for fiscal allowances) in its meeting on July 31. The ordinance aims to help those owing money to the state budget as of December 31, 2018, to pay their debts.

The debts subject to the bill are RON 36.7 billion (EUR 7.7 bln), out of which RON 25.7 bln (EUR 5.4 bln) are owed by privately-owned companies, according to a document unveiled by Hotnews.ro. The debts owed by companies with state capital subject to the bill are RON 5.8 bln (EUR 1.22 bln).

According to the latest form of the bill unveiled by finance minister Eugen Teodorovici in June, two alternative payment scheduling mechanisms are proposed: one for large debtors and another for small debtors.

Small debtors, with overdue payments to the state of up to RON 1 million (EUR 210,000) will be waived the interest and penalties accumulated (therefore will have the option of paying only the principal). Meanwhile, large debtors will be able to restructure their debt to the state out of which up to 50% could be cut. The companies undergoing the second option will be cut 30%-40%-50% of their debts in exchange for adhering to a firm repayment schedule. If they breach these terms, the allowance (reduction of principal) will be canceled.

(Photo source: Gov.ro)