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What can a business do if their revenue has declined or was temporarily obliterated and it has debt payments falling due?
Pursuant to Article 1 of Government Decree No. 47/2020 of 18 March on the immediately effective measures taken to alleviate the national economic effects of the coronavirus pandemic, all principal, interest and charges arising from loan, credit or finance lease agreements concluded by private individuals and businesses before midnight of 18 March, 2020 shall be suspended until the end of the year; this deadline may be further extended by a Government Decree.
Therefore, the due dates for settling the contract liabilities and the commitment periods shall be postponed until the end of the moratorium on payments, and agreements ending during the state of emergency shall be extended until 31 December, 2020.
The moratorium on payments does not restrict the debtor’s right to make payments according to the original terms of agreement.
Compound interest may not be charged during the moratorium. In addition, the original instalment values of previously concluded loan/credit agreements may not be raised from 1 January, 2021. The term of the agreements shall be extended such that the value of instalments shall remain unchanged during the term of the debt.
The moratorium on payments shall also be applicable to purchase price instalments and rent liabilities of natural persons participating in the National Asset Management Program
Source: ITM [Ministry for Innovation and Technology] State Secretariat for Economic Strategy and Regulations
Therefore, the due dates for settling the contract liabilities and the commitment periods shall be postponed until the end of the moratorium on payments, and agreements ending during the state of emergency shall be extended until 31 December, 2020.
The moratorium on payments does not restrict the debtor’s right to make payments according to the original terms of agreement.
Compound interest may not be charged during the moratorium. In addition, the original instalment values of previously concluded loan/credit agreements may not be raised from 1 January, 2021. The term of the agreements shall be extended such that the value of instalments shall remain unchanged during the term of the debt.
The moratorium on payments shall also be applicable to purchase price instalments and rent liabilities of natural persons participating in the National Asset Management Program
Source: ITM [Ministry for Innovation and Technology] State Secretariat for Economic Strategy and Regulations