Romanian banks are seeking solutions to help their debtors overcome the problems prompted by the Covid-19 epidemic, but they need new regulations and support from authorities like the central bank and the Government, according to the two local banking associations - ARB and CPBR - which inked two lists of proposed regulatory amendments.

Essentially, the payment deadlines can’t be deferred by the banks themselves, without following procedures that would result in the deterioration of the customers’ creditworthiness and in the quality of their loan portfolios, the bank associations argue, Profit.ro reported.

However, the two state-controlled banks, CEC and Banca Romaneasca (purchased by Eximbank recently) have already announced such allowances extended to their customers, which include deferring the payment of loan installments for one or two months.

Many requirements in the list compiled by the banks can be addressed by authorities at no, or small, cost - like extending the validity of the periodic customer identification required under central bank’s regulations.

But others involve more financial commitment on the authorities’ side. Particularly, the banks’ associations want the small firms to have their tax payments deferred as well, and ask the state to extend guarantees for the installments deferred for mortgage and consumer loans.

The state guarantees related to bank loans should also be deferred, in line with the banks deferring the installment deadline. This might require the European Commission’s approval. The state backed mortgage guarantees program First Home needs amendments as well, for the banks to defer the payments.

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editor@romania-insider.com