Bankers, Business Associations Discuss Loan Deferral

The banking community will provide businesses with a set of schemes, methods and procedures for restructuring loans issued to small- and medium-sized enterprises (SME) in the immediate future, according to a joint decision made by the Romanian Banking Association (ARB) and representatives of leading business associations on Tuesday.

The two parties reviewed proposals regarding a 12-month postponement of capital payments towards loans taken by SMEs in distress. Following the debates, clarifications and arguments presented by the parties, the conclusion was that the banking system had the means and methods to ensure the re-financing, re-scheduling or deferral of such loans, but such means and methods were insufficiently known.

Such support measures are applicable in accordance with the risk policy of each bank, as well as with internal lending norms and procedures, group policies and the actual liquidity status of each bank. Additionally, the current status of each business in question is a primary factor in establishing eligibility for support measures.

It was also decided that such meetings between the Romanian Banking Association and the business associations should be held on a regular basis as all participants found the initial meeting very constructive.

The meeting was attended by Members of the Board of Directors of the Romanian Banking Association and representatives of the National Council of Small- and Medium-Sized Private Enterprises (CNIPMMR), the Association of Business People in Romania (AOAR), UNIMPRESA Romania, the Romanian Association of Construction Entrepreneurs (ARAC), the General Union of Industrialists in Romania (UGIR), the General Union of Industrialists in Romania - UGIR 1903 and the Light Industries Federation (FEPAIUS).