The extension of the deadlines within which the repayment of loans and the release of emergency situation certificates may be requested, as well as the extension of the period within which a decrease of revenues or incomes was recorded.
Emergency Ordinance no. 70/2020 was published in the Official Bulletin no. 394 of 14 May 2020 regulating certain measures applicable as of 15 May 2020 in the context of the epidemic determined by the spread of SARS-CoV-2 coronavirus, for the extension of certain terms, for the amending and supplementing of Law no. 227/2015 on the Fiscal Code, of the National Education Law no. 1/2011, as well as of other laws (“GEO 70/2020”).
GEO 70/2020 amended the provisions of Emergency Ordinance no. 37/2020 on the granting of certain facilities for the credits granted by credit institutions and non-banking financial institutions to certain categories of debtors (“GEO 37/2020”), and also certain aspects regarding the possibility of obtaining the Emergency Situation Certificate (“ESU”).
According to the amending provisions of GEO 70/2020, the deadline for the submission of the loan repayment suspension request by the debtors which meet the conditions established by GEO 37/2020 was extended until 15 June 2020.
Furthermore, GEO 70/2020 brings a substantial amendment to article 6 letter a) of GEO 37/2020, which represents one of the most important eligibility conditions that debtors that are not natural persons (e.g. legal persons) must meet. The amendment refers to the extension of the period within which the debtors that wish to request the suspension of loan instalments must record a decrease of their income or revenues. Thus, debtors that recorded a decrease of minimum 25% of their income or revenues in March, April or May 2020 as compared to the average income of January and February 2020 and will obtain a ESU in this respect, will be able to benefit from the facilities offered under GEO 37/2020, subject to the other eligibility criteria as well.
Correspondingly, GEO 70/2020 also extended the ESU issuance period until 15 June 2020 and in what concerns the (yellow) type 1 ESU, this will be granted to economic operators that recorded decreases of their incomes and revenues by at least 25% in March, April or May 2020 as compared to the average income of January and February 2020.
Please be reminded that the Law approving GEO 37/2020 that makes certain essential amendments thereto, despite being passed by the Parliament and sent for promulgation to the President of Romania, is currently the object matter of an apriori unconstitutionality claim, which suspends the promulgation procedure and postpones the coming into force of the law. The debates of the Constitutional Court in relation to the unconstitutionality claim will take place on 27 May 2020.