Romania’s Senate passed on Wednesday, April 8, the emergency ordinance through which the Government adopted a moratorium on bank loan repayment to help individuals and companies hit by the COVID-19 crisis.

However, the Social Democratic Party (PSD), which holds the majority in the Senate, has introduced major amendments aimed at turning the executive’s bill into its own project - which was challenged by the ruling Liberals at the Constitutional Court.

The Social Democrats came up with a more generous alternative to the Government’s bank loan rescheduling, promoted the bill and had it endorsed by the Parliament.

Thus, the amended ordinance provides that the payment of loan instalments may be suspended until December 31, that debtors with overdue payments can qualify for the facility as well, and that the interest rate accrued on the principal debt during the grace period should not be capitalised - but repaid in installments with zero interest rate, Ziarul Financiar reported.

The emergency ordinance as amended in the Parliament also stipulates that applicants do not necessarily need to prove that they have been economically affected by the COVID-19 crisis.

Social Democrat leader Marcel Ciolacu had actually announced since last week that the ordinance would be amended and aligned with the draft law promoted by his party.

(Photo: Shutterstock)

editor@romania-insider.com