RO finance minister proposes new bank loan repayment moratorium

Romanian finance minister Adrian Caciu is proposing banks to agree on a new loan repayment moratorium for debtors in trouble due to the rising energy prices, Profit.ro reported.

The finance ministry wants the banks to accept a new moratorium on the ground that the utility bills increased exceptionally, in the context of the high gas and electricity prices that have depressed the disposable income of Romanians.

A similar moratorium was set in place in the spring of 2020 when the debtors were hit by the effects of the sanitary measures enforced for the containment of the Covid-19 pandemic.

In the case of the moratorium set up in 2020, banks were able to defer rates without being compelled to build up additional provisions and put their customers to default - because the European Central Bank (ECB) allowed such special exceptions to the prudential rules.

This time is different, though, since there is no regulation allowing banks to avoid setting up provisions or placing the debtors on the default list if such a moratorium is enforced, the banks argued.

(Photo: Gov.ro)