Romanian individuals with bank loans and a monthly income under the average wage of RON 1,610 (some EUR 360) may have their monthly rate installments cut by half for a period of two years, but with the limit of RON 500 (over EUR 110), according to the Romanian Prime Minister Victor Ponta.

“It is a measure to be adopted through a Government ordinance, but now, at this time, we finally have the consent of our international partners,” said Ponta. Banks would however need to give their voluntary consent for this measure.

The facility can be granted to all individuals, employees or pensioners, only if they have a monthly income under the average wage and debts more than 90 days overdue to banks. Some 907,000 individuals may benefit from this measure.

“Those with a loan installment of RON 800 will pay only RON 400, the other RON 400 being delayed for two years, and the state will pay the difference, based on a fiscal credit, from the income tax, after the two years end,” said Ponta.

He also stated that this measure would lead to lowering rates by up to RON four billion (under EUR one billion) overall this year.

According to the PM, this measure would trigger a “moderate but significant increase in consumption.”

Irina Popescu, irina.popescu@romania-insider.com

(photo source: gov.ro)