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Over 56,000 Cos Might Go Belly Up Without Debt Payment Delay – Romanian PM

Over 56,000 companies would have gone bankrupt if the payment of their budget debts had not been temporarily delayed on the backdrop of the financial crisis, Romanian PM Emil Boc stated Wednesday.
Over 56,000 Cos Might Go Belly Up Without Debt Payment Delay - Romanian PM
01 iul. 2009, 19:56, English

According to a government emergency ordinance issued Tuesday, companies could postpone by six months the payment of state debts gathered after September 30, 2008, on the backdrop of the financial crisis, if they paid in due time their debts prior to that date, as well as the current obligations. The companies need to present guarantees to benefit from this incentive.
 
The companies aiming to postpone paying budget debts for a six-month period will be compelled to guarantee the subsequent debt reimbursement through banking and/or real estate letters of guarantee, which needs to cover the deferred amounts and any delay penalties.
 
Romanian employers representatives on Wednesday said the request of banking and/or real estate guarantees to companies aiming to postpone paying budget debts for a six-month period annuls the economic effect targeted by the measure, and troubled businesses will still go bankrupted.