RO Govt. ponders 1%-of-GDP economic stimulus package

Romania’s Government has prepared a package of measures amounting to “at least 1% of the GDP”, to mitigate the negative impact of the Covid-19 pandemic on the local economy, finance minister Florin Citu said on Saturday, Ziarul Financiar reported.

"If the estimates made these days regarding the economic growth in the EU are true, a substantial package will be needed, from public and private resources, to support the Romanian economy - at least 1% of GDP,” the finance minister wrote in a Facebook post.

The European Commission has already announced that the expenditures related to the Covid-19 crisis, including stimulus packages, will be treated separately and not included in the public deficit subject to the 3%-of-GDP limitation.

Finance minister Florin Citu also said that the Government is working on a significant fiscal package for small and medium enterprises (SMEs) to help them.

The measures will be endorsed in the first Government meeting this week, Citu said. One of the first measures is deferring the tax deadlines for individuals and companies, for a period of two to three months. This will prevent the taxpayers from having their accounts frozen for unpaid debt.

In regard to the bank loan installments, the finance minister said the National Bank of Romania (BNR) is discussing with commercial banks similar measures of deferring the deadlines but it was not decided yet whether all debtors or only those who are under quarantine, will receive such breaks. The Government suggested banks could give a two to three month grace period to their debtors as well.

The consumer protection body ANPC suggested a 90-day grace period, particularly for those with mortgage loans. However, such a measure should be operated in line with the contracts and banking legislation, ANPC head Paul Anghel stressed.

(Photo: Ilona Andrei/ Inquam Photos)