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  • Tax & Legal Flash no. 8
Article:

Tax & Legal Flash no. 8

01 April 2020

Government Emergency Ordinance no. 37/2020 regarding the provision of facilities for loans granted by credit institutions and non-banking financial institutions to certain categories of debtors

GEO no. 37/2020 establishes the following measures:

  • suspension by up to 9 months, but not more than 31.12.2020, of the obligation to pay the installments related to the loans (representing capital, interest and commissions) granted by credit institutions and non-banking financial institutions to the debtors being natural persons (including authorized natural persons), individual enterprises, family enterprises, liberal professions and legal persons of credit contracts, respectively leasing contracts, except the credit institutions defined according to the Government Emergency Ordinance no. 99/2006;
  • the facility to suspend the payment of the installments can be granted only for the credits that do not register outstanding amounts on the date of the establishment of the state of emergency or if the debtors paid their outstanding amounts until the date of the request of the suspension;
  • the measure of suspension is granted exclusively to debtors whose incomes have been directly or indirectly affected by the situation generated by the COVID-19 pandemic;
  • in order to benefit from the measure of suspension, the debtors must send a request to the creditors in this regard within 45 days from the date of entry into force of GEO 37/2020, the latest;
  • the interest due on the outstanding amounts whose payment is suspended is capitalized on the balance of the existing account, the capital thus increased being paid off in installments for the remaining period until the new maturity of the loans, after the period of suspension;
  • for mortgages contracted by natural persons:
    • the interest related to the suspension period is calculated according to the credit agreement and represents a distinct debt, the interest of which is 0 and which is paid by the debtor in installments, in 60 equal monthly installments, starting with the month following the deferral period;
    • the state guarantees 100% interest payment for the suspension period by issuing letters of guarantee to the creditors;
    • the receivables resulting from the payment of the state guarantees are budgetary receivables and are recovered from the debtors by the competent fiscal bodies of ANAF. For the failure to pay the obligations arising from the execution of the guarantee letters, the debtor owes ancillary fiscal obligations;
  • in order to benefit from the suspension of the repayment of the rates, the interest and the commissions, the debtors (except the natural persons):
    • must have fully or partially discontinued its activity as a result of the decisions issued by the competent authorities, during the state of emergency and must hold the certificate of emergency situations or the certificate for emergency situations issued for the situation of diminishing incomes or revenues with a minimum of 25% in March 2020, compared to the average of January and February 2020;
    • must not undergo insolvency procedures at the date of requesting the suspension of the credit repayment;
  • the enforcement guidelines of GEO 37/2020 are to be approved by Government Decision, within 15 days from the date of entry into force of GEO 37/2020.

Order no. 740/2020 regarding the approval of template documents provided in art. XV paragraph (1) of the Government Emergency Ordinance no. 30/2020, with the amendments and additions brought by the Government Emergency Ordinance No. 32/2020

The order approves the template of the request and the statement on own responsibility for requesting the allowance by other professionals that interrupt the activity due to the effects of the SARS-CoV-2 coronavirus during the state of emergency decreed.

Order no. 741/2020 regarding the approval of template documents provided in art. XII paragraph (1) of the Government Emergency Ordinance no. 30/2020, with the amendments and additions brought by the Government Emergency Ordinance No. 32/2020

The order approves the template of the request, the statement on own responsibility and the list of persons to receive the allowance, documents that the employers submit in order to claim the payment for the allowances granted, in case the activity was reduced or was temporarily discontinued entirely or partially.

Order no. 742/493/2020 regarding the approval of template documents provided in art. XV paragraph (2) of the Government Emergency Ordinance no. 30/2020, with the amendments and additions brought by the Government Emergency Ordinance No. 32/2020

The order approves the template of the request, the statement on own responsibility and the list of participants involved in sports activity whose activity was suspended, documents that the administrator/legal representative of the sports structure will submit submit in order to claim the allowance granted to sportsmen as a result of the temporary suspension of the activity contract.

Order no. 743/2802/2020 regarding the approval template documents provided in art. XV paragraph (4) of the Government Emergency Ordinance no. 30/2020, with the amendments and additions brought by the Government Emergency Ordinance No. 32/2020

The order approves the template of the request and the statement on own responsibility for claiming the allowance by natural persons obtaining income exclusively from copyrights and related rights, who interrupt the activity as a result of the effects SARS-CoV-2 coronavirus, during the state of emergency decreed.