1. IMPLEMENTING RULES FOR GOVERNMENT EMERGENCY ORDINANCE 37/2020
The Government approved the implementing rules (the “Rules”) for Emergency Ordinance no. 37 of 30 March 2020 on certain facilities for loans granted by credit institutions and nonbanking financial institutions to certain categories of debtors (“GEO 37/2020”) pursuant to Decision no. 270 of 2 April 2020, published in the Official Gazette no. 285 of 6 April 2020.
You can find below a summary of the main aspects or clarifications brought in by the Rules.
A. DEFINITION AND CLARIFICATION OF CERTAIN TERMS AND PROVISIONS UNDER GEO 37/2020
The Rules define and describe certain terms and special provisions under GEO 37/2020, mostly related to mortgage loans, among which:
- Capitalization: the increase in the credit balance existing at the end of the suspension period with the interest due by the debtor, calculated on the outstanding credit balance, except for mortgage loans;
- Deferred interest: the interest corresponding to the payment suspension period due by individual debtors, calculated on the outstanding credit balance in the suspension period, applicable to mortgage loans, reflected as a stand-alone and independent receivable with 0% interest.
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