The timeline below outlines the most important pieces of legislation generated by the Covid-19 outbreak and their main focus.
Compliance with measures enacted by the public authorities during the state of emergency may be verified by the enforcement authorities, which are also empowered to sanction any violation of the described provisions. For more details, please see our dedicated articles on risk for companies to be exposed to criminal investigations and new false statements offence.
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Main measure: For a period of one year, the private pension funds and the optional pension funds may invest more than 70% of their total asset value in Romanian government securities or those of EU or EEA member states.
Purpose: New conditions and prohibitions on trade during emergency situation.
- the export for certain agri-food products (e.g. wheat, oat, rice) is banned/suspended;
- intra-community acquisitions of certain products (e.g. wheat, oat, rice) is allowed;
- suspension of the procedures for selling/buying majority shares of companies in the National Energy System;
- prohibition of termination/suspension of social services (e.g. residential and assistance centers for the elderly people or disabled persons);
- prolongation of the temporary closure of certain border crossing points;
- prolongation of the suspension of certain flights.
What’s new? The extension of the mandates of the current local public administration authorities and the postponing of the local elections.
What’s new? The distribution of funds for the purchase of hygiene materials intended for distribution to disadvantaged persons is approved, and a risk benefit for doctors is established.
Purpose: Documents issued by public authorities and institutions in an electronic format and signed with the qualified electronic signature are assimilated to authentic documents;
What’s new? The amount granted in the form of cultural tickets for the period 1 April 2020 – 31 July 2020 is maximum RON 160/month, respectively maximum RON 320/event.
What new? The procedural steps to achieve moratorium introduced by GEO no. 37/2020.
- Quarantine in Țăndărei area;
- Further flight prohibition and conditions for freight vehicles drivers transiting.
What’s new? New conditions for the Program for the support of SMEs – IMM INVEST ROMANIA and approval of the State aid scheme for supporting the activity of SMEs.
Purpose: Modification of Law no. 41/2020 regarding the granting of free workdays for parents in case of the temporary closure of educational unit.
- Free days may be granted.
What’s new? Extension of certain terms for communication of documents to ASF in insurance field.
What’s new? The form of the emergency situation certificate is changed.
Main measures: Approval of documents necessary for obtaining the technical unemployment aid.
Main measures: Increased fines for non-observance of emergency restrictions.
Purpose: Modification of the procedure for receiving job applications or unemployment benefit, (Order of the President of ANOFM no. 85/2002).
Main measure: Quarantine in Suceava area.
Main measure: Further suspension of flights.
Purpose: Moratorium of credit facilities from credit institutions and non-banking financial institutions as creditors.
Main measures: Borrowers under credit facilities (including leasing) may opt in for suspension of payments (principal, interest, and costs), and postponing of maturity for maximum 9 months, however not exceeding 31 December 2020.
- the creditor grants moratorium pursuant to the borrower’s application if: (i) the credit facility is not yet matured, there are no overdue amounts payable or such amounts are paid until the borrower’s application for moratorium, and (ii) the borrower declares that its income has been affected by the COVID-19 situation (in case of legal persons, the emergency situation certificate stating the decrease of income by 25% in March 2020 compared to the previous 2 months, or the business stop, must also be filed with the creditor, and no insolvency proceedings must have been registered against it);
- in all cases except for mortgage loans, the interest corresponding to the suspension period will accrue to the principal. In case of mortgage loan, the payment of such interest is secured by the state;
- the amendment of the credit facility agreement is achieved by the bank’s notification to the borrower comprising the amended clauses. The codebtors, guarantors, or security providers must approve the new terms in order for the amended terms to be enforceable towards them.
Main measures: Holiday vouchers for 2020 are issued only electronically; extension of the validity period of validity of the existent holiday vouchers.
Main measures: Tax reduction for firms that pay income tax due up to the 25 April 2020 – 5% for large taxpayers, 10% for medium taxpayers and other types of taxpayers.
Amendments to existing provisions:
- the employees receive technical unemployment benefits during the state of emergency if their employer has reduced or interrupted activity;
- the emergency situation certificate and the affidavit regarding the decrease of revenues and lack of financial capacity are no longer required for settlement and the limit of employees who can benefit from the technical unemployment.
- the technical unemployment benefit is not available to an individual that has multiple employment contracts of which at least one full-time contract active;
- the technical unemployment benefit is applicable to the employment contract with the most advantageous wage rights if an individual has several employment contracts suspended;
- the employer may provide additional technical unemployment benefits;
- the suspension period is assimilated to a contribution period for work related taxes.
Purpose: Approval of the Norms regarding the calculation method and the procedure for approving the maximum prices of medicinal products for human use
Purpose: amendments to Government Military Ordinance no. 3/2020 and new restrictive measures concerning the free movement of people.
- an additional time interval for daily movement for elderly people over 65 years;
- economic operators selling food and products of strict necessity must adjust their work schedule to facilitate the access of elderly people over 65 years;
- persons leaving quarantine without approval will resume the 14-day quarantine cycle expenses borne; people not abiding by isolation will be quarantined for 14 days, expenses borne;
- banning the price increase for electricity and heat, natural gas, water supply, sanitation, and fuels.
Purpose: Clarifications for state aid schemes.
- suspension of extinguishment periods and impossibility of termination of contracts in certain conditions;
- the program administrator cannot take any steps to recover the de minimis aid granted;
Order No. 502/417/2020 of the Minister of Health and President of the National Health Insurance House
Purpose: Issuance in an electronic format of medical leave certificates for employees with COVID-19 self-isolation or quarantine obligations.
Main measures: During the emergency state, the fees, taxes, quotas, and contributions due by the entities supervised by ASF are reduced by 25%.
Main measures: For the period 24 April – 23 May 2020, the penalty interest rate for the deficits of mandatory minimum reserves constituted in national currency is 3.75% per year.
Purpose: Adding to GEO no. 77/2011 on contributions for the financing of some expenses in the health sector.
Purpose: Approving of the temporary suspension of the distribution outside the Romanian territory of biocidal products
Purpose: Amending certain self-isolation and quarantine procedures.
Purpose: Procedure for issuance of the state of emergency certificates to the firms affected. Further amended by Order no. 822/2020 and Order no. 872/2020.
- two types of emergency situation certificates (i) type 1 – blue for business totally or partially interrupted; and (ii) type 2 – yellow for business decrease of minimum 25% in March 2020 compared to the average of January and February 2020.
Purpose: Modification of the list comprising the medical devices and materials related to SARS-COV-2 infection, export suspended.
Purpose: Additional prohibitions and restrictions for restraining the spread of COVID-19.
- movement of people outside their home is prohibited, except for justified cases; justification documents needed;
- public institutions and economic operators are required to mark the access areas to observe the minimal safety distance of 1.5 meters;
- stricter safety measures for the agri-food market administrators;
- commercial activities conducted in shopping centers allowed for (i) sale of electronic/electric household products if ensuring home delivery and (ii) sale of medical optics products and services.
- additional movement restrictions for elderly people over 65 years;
- extension of validity of documents issued by public authorities;
- further flights
Purpose: Additional restrictions and prohibitions for preventing the spread of COVID-19.
- shopping centers closed, except for sale of food, pharmaceutical or veterinary products and cleaning services;
- recommendations for limiting movement of people outside home during daylight, restrictions during night-time;
- transit restrictions.
During the suspension of the individual employment contract by the employer, the employees will receive allowance of minimum 75% of basic salary but not more than 75% of the average gross salary (borne by state budget.
- granting of an allowance of 75% of the basic salary, but no more than 75% of the average gross salary to employees affected by school closings.
Purpose: Economic and fiscal budgetary measures to mitigate the negative impact on economy.
- Economic measures in order to protect SMEs
- state guaranteed loans and subsidized interests;
- deferred payment for small and medium-sized enterprises (SME) for utilities and rent, if (i) business is interrupted due to state of emergency, and (ii) emergency situation certificate available;
- force majeure may be claimed in ongoing agreements if parties have first tried to renegotiate;
- authorities’ enforcement of emergency measures affecting the SMEs’ business and are ascertained by an emergency situations certificate, are presumed as force majeure.
- Other economic measures
Deferred payment for the utility service and rents for family doctors’ offices and dental offices (maximum 20 employees) and sports clubs.
- Tax measures applicable to all categories of persons:
- Suspension/non-commencement of enforced measures for budgetary debts;
- not accruing of interest and late payment penalties for the due tax obligations starting with 21 March 2020;
- extension of the payment term for property tax;
- extension of deadlines for submitting the declaration regarding the real beneficiary.
Purpose: Establishment of necessary measures to respect the isolation, quarantine, and hospitalization.
Main measure: The nominal value of a meal voucher may not exceed RON 20.
Purpose: Approving the maximum prices of medicinal products for human use.
Purpose: The Criminal Code was amended (modifications to articles 326 and 352 and a new article 352).
1. New incriminations for:
- giving a false statement to a public servant, in order to conceal the existence of a risk of infection with a contagious disease;
- hampering the disease control through the failure to comply with quarantine or hospitalization measures;
- the transmission, by any means, of an infectious contagious disease by a person who is aware that he suffers from this disease;
- the omission of the person to disclose essential information regarding the possibility of contacting an infected person with an infectious disease.
2. Penalty limits increased for:
- false statements offence;
- voluntary and involuntary hampering the disease control if the act resulted in the spread of such a disease.
The Parliament approved the state of emergency for 30 days.
The communication with ASF is conducted only in electronic format.
Impact: temporary suspensions of certain activities in open or closed spaces (such as restaurants, hotels, coffee shops cultural, sports), prohibition of events exceeding 100 persons, 1-meter distance between participants in other cases, suspension of certain flights from risk areas.
The Secretary of State may order any measures necessary, including the establishment of quarantine zones, temporary restrictions on movement, as well as evacuation measures.
Purpose: Establishment of a state of emergency until 16 April 2020.
- Measures with direct and immediate applicability, such as:
– affected economic operators may obtain emergency situation certificates;
– the documents issued by the public authorities expiring during the emergency remain valid;
– the activity of the courts is limited to urgent cases;
- First-aid measures with gradual applicability may be further imposed, such as isolation and quarantine of certain persons, restriction of the right to free movement.
The timeline and details above are strictly for informative purposes and do not constitute legal advice. act | Botezatu Estrade Partners shall not be responsible for any damages resulted from using the above information.