COVID-19

COVID-19

Suspension of payment obligations for credit and leasing contracts. Emergency Government Ordinance no. 37/2020. Update: implementing rules of the GEO entry into force

Considering the worsening of new coronavirus spread, in Romania the state of emergency was established by Decree no. 195/2020 regarding the establishment of the state of emergency in the territory of Romania and numerous measures were adopted aimed at restricting or even suspending certain economic activities.

 

Since significant economic imbalances have already appeared and are anticipated, several measures have been adopted to protect and support the business environment, notably regarding small and medium-sized enterprises (“SMEs”), but also to the population, in order to combat this negative impact.

 

Within the package of legislative documents adopted by the Romanian authorities in order to support the business environment, the Emergency Ordinance no. 37/2020 regarding the granting of facilities for loans granted by credit institutions and non-bank financial institutions to certain categories of debtors (“GEO no. 37/2020”), through which a series of measures applicable to legal entities, other professionals or enterprises, as well as individuals as consumers.[…]

Suspension of payment obligations for credit and leasing contracts. Emergency Government Ordinance no. 37/2020

Considering the worsening of new coronavirus spread, in Romania the state of emergency was established by Decree no. 195/2020 regarding the establishment of the state of emergency in the territory of Romania and numerous measures were adopted aimed at restricting or even suspending certain economic activities.

 

Since significant economic imbalances have already appeared and are anticipated, several measures have been adopted to protect and support the business environment, notably regarding small and medium-sized enterprises (“SMEs”), but also to the population, in order to combat this negative impact.

 

Within the package of legislative documents adopted by the Romanian authorities in order to support the business environment, the Emergency Ordinance no. 37/2020 regarding the granting of facilities for loans granted by credit institutions and non-bank financial institutions to certain categories of debtors (“GEO no. 37/2020”), through which a series of measures applicable to legal entities, other professionals or enterprises, as well as individuals as consumers.[…]

Measures recommended by the Competition Council

On 23.03.2020, the European Commission and the National Competition Authorities issued a joint statement on how to apply the competition rules during the crisis caused by SAR-CoV-2 coronavirus.

 

In this regard, it was noted that the competition rules are flexible enough to take into account changes in market circumstances, as a result of the crisis caused by SAR-CoV-2 coronavirus, as well as that this extraordinary situation may trigger the need for companies to cooperate in order to ensure the supply and fair distribution of scarce products to all consumers.

 

At the same time, it was underlined the importance of ensuring that products considered essential to protect the health of consumers in the current situation (e.g. face masks, sanitizing gel) remain available at competitive prices. […]

Emergency Government Ordinance no. 29/2020 regarding certain economical, fiscal and financial measures

Following the appearance of the new corona virus (SARS-CoV-2) and its spread from China to numerous states, the President of Romania has instated the state of emergency through the Decree no. 195/2020 for instating the state of emergency on the territory of Romania. Consequently, numerous measures that restrict or even suspend several economic activities were instated.

 

Thus, along the measures for protecting human health, the Romania state noted the necessity to address the problem of protecting and supporting the business environment, which is more and more affected by the pandemics. When performing the opportunity assessment, the Romanian Government has observed that, among the most affected economic operators, as well as the most numerous, there are the small and medium-sized enterprises (“SMEs”).

 

Within the legislative package adopted by the Romanian authorities aimed to support the business environment there is also the Emergency Government Ordinance no. 29/2020 regarding certain economical, fiscal and financial measures (“EGO no. 29/2020”), which has instated a series of measures generally applicable for the business environment, as well as a series of specific measures directed at supporting the activity of SMEs.[…]

The enactment of Government Emergency Ordinance no. 30/2020. Technical unemployment – furloughed workers

Considering the issuance of Romania’s President’s Decree no. 195/2020 establishing the state of emergency throughout the entire Romanian territory, on 18.03.2020, took place a Government meeting held up in teleconference system. During this meeting, the Romanian Government adopted the Emergency Ordinance no. 30/2020 for the amendment and completion of several normative acts, as well as for establishing measures in the field of social protection in the context of the epidemiological situation determined by the spread of the virus SARS-CoV-2. The normative act was published on 21.03.2020 in the Official Monitor of Romania Part I, no. 231.

 

One of the most important and relevant measures regulated by GEO no. 30/2020 refers to granting the employers with the possibility to make use of technical unemployment, which entails the temporary suspension of their activity, due to economic/technologic/structural or similar conditions, without making any redundancies or lay-offs.

 

In this respect, during the emergency state period established by Decree no. 195/2020 and considering the consequences determined by the spread of virus SARS-Cov-2, the employers, which were affected by being put into the position of disrupting or reducing their activity, may unilaterally suspend the on-going labour agreements, pursuant to Art 5 Para 1 letter c) from the Labour Code.[…]

Certificates for emergency situation – How to obtain them and why are they necessary?

The Decree no. 195/16.03.2020 of the Romanian President for instating the state of emergency throughout the entire Romania territory (“the Decree”), following the pandemics caused by the new corona virus provides that the Ministry of Economy, Energy and Business Environment (“MEEBE”) will release, upon request, certificates for emergency situation (“CES”) in favour of the economic operators whose activity is affected in the context of COVID-19, based on supporting documents.

 

Along with the instatement of supporting measures for the economic activity through EGO no. 29/2020 regarding certain economical, fiscal and financial measures (“EGO no. 29/2020”) ad well as EGO no 30/2020 for modifying and completing certain normative acts, as well as for establishing measures regarding social protection in the context of the epidemiologic circumstances determined by the spread of the corona virus SARS-CoV-2 (“EGO no. 30/2020”) there resulted which will be the practical utility of CES: access to a series of benefits/measures granted by the state to economic operators is conditioned by obtaining a CES.

 

With respect to the proceeding of obtaining a CES, after a project of government decision to regulate this proceeding has circulated in the public space, the MEEBE’s Order no. 791/2020 regarding the granting of certificates for emergency situation to economic operators whose activity is affected in the context of the SARS-CoV-2 pandemics (“Order no. 791/2020”) was published in the Official Gazette no. 248 of 25.02.2020.[…]

Force majeure and COVID-19. Typical or atypical

The coronavirus epidemic, known as COVID-19, is spreading throughout Europe, with the virus inevitably occurring in Romania as well. This epidemiological situation is regarded worldwide as a public health emergency of international interest, according to the World Health Organization, especially with regard to the extreme contagion of this virus. In view of this situation and in view of the unforeseen future developments, WHO declared coronavirus to be a pandemic.

 

In this context, companies need to analyze the impact of this epidemic both on the level of human resources and on the level of commercial relations with the contractual partners located in the affected areas.

 

Many states and corporations have taken drastic measures to stop the spread of the virus, significantly affecting global economic operators, such as quarantine and/or strict measures to restrict the movement of people.[…]