RO FinMin assures all bank debtors will get nine-month grace period

All Romanian bank debtors, individuals or companies, will be able to defer the payment of their installments by up to nine months upon a simple phone call, finance minister Florin Citu assured on Wednesday, March 25. The phone call should be followed by an email, he added. An emergency ordinance (OUG) on this topic will be passed by the Government on March 26, he also stated, Ziarul Financiar reported.

President Klaus Iohannis in his March 25 public statement confirmed the measure without providing details, and stated his support for the move.

The suspended installments will be spread over a longer period of time such as to avoid excessive indebtedness during the first months after the grace period, according to the very few details provided by minister Citu.

The solution is “90% agreed with Romania’s National Bank and the commercial banks,” the finance minister said one day earlier on Tuesday, adding that there were only technical details that were left to be settled.

BNR has indeed already issued a press release that allows banks to reschedule the repayment of the loans without a negative impact on the quality of their portfolios.

However, the recommendation made to banks about still monitoring the debts that become problematic for reasons other than the economic effects of coronavirus (Covid-19) pandemic, indicate that the rescheduling process might be slightly more complex than just a phone call.

(Photo: Ilona Andrei/ Inquam Photos)