The National Bank of Romania (NBR) adopted a package of measures aimed at mitigating the negative effects of the crisis generated by the coronavirus (COVID-19) epidemic on households and Romanian companies.
The following measures have been taken:
- monetary policy measures: (1) to cut the monetary policy rate by 0.50 percentage points, from 2.5 percent to 2.0 percent; (2) to narrow the symmetrical corridor defined by interest rates on standing facilities around the monetary policy rate to ±0.5 percentage points from ±1.0 percentage points. Thus, the deposit facility rate stays at 1.50 percent, while the lending (Lombard) facility rate is lowered to 2.50 percent from 3.50 percent. The expected effect is to reduce the interest rates on loans to companies and households. (3) to provide liquidity to credit institutions; (4) to purchase leu-denominated government securities on the secondary market to ensure the smooth financing of real economy and the public sector.
- measures to increase the flexibility of the legislative framework so that banks and NBFIs could help individuals and companies with outstanding loans. Lenders will be allowed to delay payments of the loans of any individual or company affected by the COVID-19 pandemic, without applying the conditions related to the level of indebtedness, the loan-to-value limit and the maximum maturity of consumer credit.
- measures regarding the bank resolution: to postpone the deadline for collecting the annual contributions to the bank resolution fund for 2020 by 3 months, with the possibility of extension to up to 6 months; to delay the reporting deadlines of some information on resolution planning.
- operational measures: to ensure the smooth functioning of payment and settlement systems underlying payments in the domestic currency, so that commercial and financial transactions can be performed under normal conditions; the NBR will provide banks with continuous cash flows for all operations, including liquidity for ATMs.
Further details on these measures can be found in the press releases presented below.
Frequently asked questions amid the COVID-19 epidemic
What measures has the NBR taken for deferring payment of loan instalments to banks?
The NBR has allowed lenders, banks and non-bank financial institutions, to delay payments of the loans of the individuals affected by the COVID-19 pandemic, without applying the restrictive provisions set forth in NBR Regulation No. 17/2012 on certain lending conditions, as subsequently amended, related to the level of indebtedness, the loan-to-value limit and the maximum maturity of consumer credit.
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When and where can borrowers submit their applications for deferring payment of loan instalments?
Emergency Ordinance No. 37/2020 setting forth relief measures for certain categories of debtors as concerns the loans granted by credit institutions and non-bank financial institutions was published in Monitorul Oficial al României, Part I, No. 261 of 30 March 2020, and is currently in effect. At the same time, the Government of Romania also adopted the Decision approving the Norms for enforcing this legislative act, which was published on 4 April 2020. Specifically, at their option, the borrowers, either individuals or legal entities, sending an application to the creditor 45 days at the latest since the coming into force of Government Emergency Ordinance No. 37/2020 may benefit from relief measures consisting in the suspension of payments of loan instalments up to 9 months, but not later than 31 December 2020. The Ordinance is also applicable to non-bank financial institutions (NBFIs), Romanian legal entities, defined in compliance with the legislation in force, as well as to the branches of credit institutions and NBFIs from abroad that do business on the territory of Romania.
The credit contract is a bilateral agreement between the bank/NBFI and the borrower. The application for deferring payment of loan instalments SHALL NOT be sent to the National Bank of Romania, but solely to commercial banks or NBFIs respectively. Moreover, only the Norms for enforcing Emergency Ordinance No. 37/2020 setting forth relief measures for certain categories of debtors as concerns the loans granted by credit institutions and non-bank financial institutions set the eligibility requirements for debtors, individuals or legal entities, that may benefit from these provisions.
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Will borrowers encounter difficulties when accessing future loans if they suspend their payment obligations in accordance with GEO No. 37/2020?
No, the natural and legal entities that have resorted to the facilities stipulated in GEO No. 37/2020 are not considered non-bankable customers and this does not affect in any way their relations with banks once payments are resumed. They are registered in the Central Credit Register only for the informative purposes of banks and this will not limit the borrowers' access to banking services in the future.
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Does the NBR ensure disinfection of banknotes and coins in circulation?
Both banknotes and coins that are periodically returned to the National Bank of Romania are processed in spaces specially designed for cash operations, equipped with complex systems for ventilation and air filtration, as well as UV sterilizers. Before being put back into circulation, banknotes and coins are wrapped in heat-shrinkable film and deposited in central banks’ vaults for at least 14 days. All locations are regularly sanitized with professional cleaning products and disinfected with biocidal products, and appropriate measures have been taken to protect our staff in the current pandemic context.
For safety reasons, the NBR encourages people to use electronic means of payment (card, telephone, bank transfer, online payment, etc.) whenever possible, and to sanitise hands after handling cash.
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Does the NBR carry out operations with the public through its regional branches?
Yes, the NBR continues to conduct front office operations through its regional branches.
In order to avoid congestion, we recommend that you make an appointment by telephone before coming to any of the dedicated counters within the NBR’s regional branches, at the following numbers and during these time slots: 8:30 – 12:00, 12:30 – 14:30:
- Bucharest Regional Branch: (+4) 0373 336220
- Cluj Regional Branch: (+4) 0373 335734
- Constanța Regional Branch: (+4) 0373 335873
- Dolj Regional Branch: (+4) 0373 335936
- Iași Regional Branch: (+4) 0373 336340
- Timiș Regional Branch: (+4) 0373 336914
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How can numismatic products be purchased?
The numismatic products are available for purchasing in all regional branches. In the case of new numismatic issues, they can be reserved by using an online form (Romanian only), within the limit of available stock. Find more information in the Numismatics section.
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