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Gov't: Private companies may reschedule their public debt
Private companies operating in Romania may reschedule their public debt under an emergency ordinance passed by the Government at a meeting on Sunday, Prime Minister Emil Boc reports. The rescheduling will be made over up to five years and it is aimed at both the public and the private companies.
'We do not aim to discriminate between public and private companies; the conditions apply equally to all. We have to make sure that these rescheduled debts are paid and there are proper guarantees for their payment. At the same time, we are interested in the operating companies avoiding default or insolvency,' said Boc.
The rescheduling will cover the debts managed by the National Tax Administration Agency (ANAF). They are related to profit taxes, income taxes and excise duties.The taxpayers wanting to take the rescheduling will have to meet certain condition, including providing collaterals and proving they have ongoing business orders, while the companies should not be insolvent or undergoing dissolution procedures.
'The aim of this normative act is to support the companies and entrepreneurs that have prospects for economic development, have business orders they could work on, have an economic future but are currently facing problems triggered by the financial difficulties generated by the crisis and are in danger of becoming insolvent and default on their payments,' said Boc.
Finance Minister Gheorghe Ialomitianu says the taxpayers asking for rescheduling will have to set aside a collateral. The collaterals may be securities or letters of guarantee. If securities are chosen and the request is for rescheduling exceeding one year, an additional guarantee will be set aside equal to between 10 and 40 percent of the debt, according to the length of rescheduling.
In the case of rescheduling exceeding one year, and additional 10-percet guarantee will be provided, and if the company requests rescheduling of up to five years, the additional guarantee may reach 40 percent.
As easy terms for the companies providing letters of guarantee for rescheduling, the interest to bear will be 0.03 percent. The taxpayers providing securities will bear a 0.04 percent interest, said Ialomitianu.
In the case of individuals requesting rescheduling, when the liabilities involved are smaller than RON 5,000, no guarantees are required, while in the case of legal persons no guarantees are required for liabilities smaller than RON 20,000.Another condition is that the taxpayers applying for rescheduling should submit their tax returns by the time the application is submitted for the rescheduling.
Likewise, the applicants for rescheduling have to be in economic distress but they should also have the necessary financial means for the rescheduling and be able to pay the related dues.