Several banks have announced steps for customers with loans who are having trouble repaying them due to the coronavirus crisis, deciding to postpone payment of installments by individuals by one, two or three months while extending the lines of credit by several months or more for companies or even cutting loan instalments for companies by 100% for the next six months, like Banca Transilvania, the largest local lender, did.
Romania’s central bank says it has taken all the necessary steps to continue to ensure the smooth running of the payment and clearing systems in domestic currency so commercial and financial transactions could continue smoothly, regardless of how the situation caused by the pandemic develops.
It also constantly monitors and analyzes domestic and international developments, as well as the impact of the COVID-19 pandemic on financial markets and national economy, and is ready to ensure necessary stability under the circumstances, as well as the liquidity of the banking system for the smooth running of public finance and real economy.
“Current funding of public spending (salaries, pensions, social spending, investments etc.) is a priority. In case of higher demand from consumers, BNR will ensure uninterrupted cash flows for all operations, including cash for ATM machines,” Romania’s central bank said.
Bank customers have full access to the money in their accounts regardless of whether they choose to withdraw cash from ATMs, operate banking transactions or go to bank offices if necessary. The central bank recommends people to avoid going to the bank if possible and pay by card or online.
The central bank also says it is working on adequate modifications of the prudential banking regulations in line with European and international recommendations, while seeking to ensure lenders’ and corporate and individual customers’ creditworthiness remains within acceptable limits.
Banks have requested Romania’s central bank to modify regulations so postponement of installment payment could be considered an exception and not affect the risk profile of customers and not have their loans moved to the troubled loan category requiring provisions from banks.
(English version by Loredana Fratila-Cristescu)