This draft ordinance amending the Fiscal Code, respectively GEO no. 46/2014 on amending and supplementing Law no. 571/2003 regarding the Fiscal Code, published in Official Gazette no. 475 of 27 June 2014 requires restructuring of loans as follows:
– the restructuring will be given to those who do not register delays in payment or those whose delays do not exceed 90 days.
– decrease by more than 35% of the monthly rates, but no more than 900 lei (or the equivalent, if the loan is in foreign currency) for a period not exceeding 2 years.
– the initial duration of the loan period will be extended with the period for which is applied the reduction of the rates, maximum 2 years.
– the amounts were deducted will be distributed over a period equal to that for which it was granted the reduction of liabilities (ie maximum 2 years), starting from the period from which the reduction is no longer applied.
– after the end of the period in which the decrease of the rate occurs (maximum 2 years), the borrowers will qualify for the same period (maximum 2 years), for an additional tax deduction ” – the monthly deduction is granted after completion of the rate reduction period and represents is rate in this period, but not less than 900 euro / month, “says the ordinance.
– the person who applies for restructuring must be the holder of a credit agreement underway at May 31, 2014, regardless of the date of granting the credit.
– are eligible the people with lower incomes or equal to 2,200 gross lei.
Currently, the government wants to change certain provisions to help those with francs loans, hoping in this way, banks will be tempted to adopt it. Thus, raising the ceiling to 3,000 lei, as proposed by the Government, about 77% of those with loans in Swiss currency will be eligible. It is also desired the growth of the special deduction for credits from 900 to RON 1,500 per month, equivalent to a maximum of 240 lei monthly income tax reduction. Moreover, special deduction will not apply after a period of up to two years, but in the month immediately following the rescheduling loan.
Finance Minister Darius Valcov, stated that: “We can make the provisions more flexible so that they could come into effect from 1 March of this year, and those who apply for rescheduling can enter the program since the first quarter” (according ziuanews.ro)
He also mentioned that the measure should complement the individual programs of banks and said that the National Bank of Romania has to intervene and mediate talks between clients and financial institutions.
So far, three banks have introduced programs to support the Romanians with francs loans:
1. Raiffeisen Bank announced that they will reduce the interest loans for their clients who have loans in Swiss currency.
2. Volksbank said it will freeze the course on which will be paid the rate for loans in Swiss francs at the quotation recorded last year. The measure will be valid for three months.
3. OTP Bank announced that, following an analysis aimed at customer history and current conditions thereof, will provide a temporary reduction by up to 1.5 percentage point interest rate margin on loans in francs with variable interest, all for a period of three months.
The Budget and Finance Committee meet in the Chamber of Deputies on 21.01.2015 to discuss solutions of the Romanians with francs loans, affected by the appreciation of more than 15% of the Swiss currency. The agenda was: the appreciation of the Swiss franc loans in this currency, central bank representatives, the Romanian Banking Association, the Ministry of Public Finance and ANPC hearing.
During this meeting has been called into question also the Law on conversion of loans, which is a proposal of conversion of loans, for loans in Swiss francs, through which, at the request of the clients, the conversion of the balance of these loans will be achieved by applying the midpoint conversion determined by an arithmetic mean of average monthly rates of the month until the loan granting conversion.
But, Supervisory Director of BNR, Nicholas Finch stated that: “Any decision to convert to a different exchange rate than the one of the date of the transaction produces losses for banks. Solving by an act to establish conversion to another course than the date of the transaction can not be done! (…) There are banks that can fail if the conversion is done at the historic course. And not one or two banks at risk of bankruptcy! Someone said that the volume of loans in francs is not a systemic risk but the bankruptcy of a bank is a systemic risk “(according to mediafax.ro).