On Tuesday, the Senate approved that, at the request of the debtor, the principal and interest payment liabilities on loans taken out by private individuals and businesses will be suspended until the end of 2020. At the proposal of the Democratic Alliance of Hungarians in Romania – otherwise known by its Hungarian acronym of RMDSZ – the ordinance doesn’t only concern small- and medium sized enterprises, but all companies and private individuals. The moratorium is not automatic and must be requested by the debtor.
“Right now, the health and safety of the people is paramount, but we are also working on the fastest possible stabilization of the economy after the pandemic is over. RMDSZ suggested specific measures to the government in order to ease the negative economic effects of the virus,” highlighted RMDSZ faction leader in the Senate, Attila Cseke.
According to Barna Tánczos, RMDSZ senator and member of the Senate’s financial committee, the RMDSZ MPs were fighting in Parliament on Tuesday for the approval of the best possible version of the law. For example, banks cannot charge interest rates for the period of the moratorium. According to the original draft, the moratorium was only going to last only until the end of September, but at the proposal of RMDSZ, it was postponed until the end of the year. Thus, both private individuals and companies will have the chance to recover from the crisis caused by the state of emergency situation, emphasized Tánczos adding:
“The original draft only concerned small- and medium sized enterprises, but at the proposal of RMDSZ, it will concern everybody.”
Because Romania has a bicameral parliamentary system, before the ordinance can come into force, Parliament’s lower house – the Chamber of Deputies – must first approve it, too. (Source: rmdsz.ro)
Title image: illustration (Photo: Shutterstock)
