Ioana Petrescu: The “electoRate” will be postponed until 2016

The minister of Finances, Ioana Petrescu, announced on Tuesday in an online interview that the debt-aid scheme known primarily as the “electorate”, will be implemented starting with 2016. The original formula devised by Liviu Voinea has suffered a couple of changes, Petrescu added.

“We will implement it but I want to have the banks and the business community involved. The new plan is to help low income individuals in 2016 and we’ve put together a team that will identify any possible problem. If there are people with low income we need to help them to prevent loans from going under. But the measure must be less bureaucratic, we’ve changed Voinea’s formula”, Ioana Petrescu announced.

The electorate as it was dubbed by president Basescu offers individuals with rescheduled loans a fiscal credit, but only after the rescheduling period expires. The system is optional for the banks, since it would imply certain limitations for the relationship with their clients. Furthermore, the State so far has no deals with any credit institutions.

The International Monetary Fund approved the measure since it could boost consumption and lending, Ponta argued.

Central Bank administrator Mugur Isarescu weighed in on the State’s plans on Tuesday, arguing that banks have no reason to reschedule loans for clients who kept up with their payments, but they might choose to easen the burden for clients that are close to struggling.

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