Romanian Cos May Reschedule State Debts, With Insurance Clauses – Sources

The new system will be introduced by the end of May and will regulate a series of fiscal measures targeting to support businesses.

According to the sources, the draft law on the rescheduling of debts has already been included on the list of bills that the Finance Ministry would present the government.

The Government decided mid-2009, through an emergency ordinance, that companies could benefit from a six-month payment postponement of debts to the state they amassed after September 30, 2008, on the backdrop of financial crisis, if these companies have been disciplined taxpayers until that date.

Companies that postponed the payment of their debts to the state budget were compelled to guarantee the subsequent debt reimbursement through banking and/or real estate letters of guarantee, which had to cover the deferred amounts and delay penalties.

Romania’s privatization authority AVAS also proposed at that time that small and medium-sized enterprises would be allowed to reschedule the payment of debts and delay penalties for five years without risking foreclosure.