Legal Financial Services Alert

Legal Financial Services Alert

Since 30 March 2020, debtors may request creditors to postpone their due loan payment obligations for a maximum period of 9 months which cannot go beyond the end of 2020

Please find below a summary of the key aspects outlined by the Emergency Government Ordinance no. 37/2020 on granting of certain facilities for the loans made available by credit institutions and non-banking financial institutions to certain types of debtors (the „Moratorium Ordinance”).

Implementation rules will be issued within 15 days from the entry into force of the Moratorium Ordinance.

We note that since March 23, 2020, there is another legislative proposal with a similar object in the Parliament, i.e. proposal L181/2020 on the moratorium of credit repayment ("Legislative Proposal"). While in the form initially published, the Legislative Proposal was similar to the provisions of the Moratorium Ordinance, on March 31, 2020, the Senate approved the Legislative Proposal, with a considerably different content and provisions which contradict significantly the provisions of the Moratorium Ordinance.

The details of the provisions of the Legislative Proposal can be found in Section 7 of this alert. According to publicly available media sources, the Legislative Proposal will be subject to a vote and in the Chamber of Deputies on Friday, April 3, 2020, and, if approved, will be sent for promulgation on Monday, April 6. It remains to be seen in the coming days what will be the fate of the legislative process and how the two contradictory normative acts will be reconciled.

For the complete version of the article please see the document below: