The Executive has approved today, through an Emergency Ordinance, a series of amendments to Government Ordinance nr.10/2004 on credit institutions’ bankruptcy.
"The new regulations will contribute to strengthening confidence in the banking system. Thus, debts of credit institutions in insolvency to depositors, in the legal guarantee margin are paid with priority. These debts will have a higher preference rank. Meanwhile, the legislative act will give business environment an increased degree of legal certainty in that the opening of bankruptcy proceedings in credit institutions is done by prior approval of the NBR(BNR), " the Spokesperson for the Executive, Mrs. Ioana Muntean stated.
The central bank may not give such approval if it considers that the credit institution is not insolvent.
Amendments made today respond to the Stand-by Arrangement between Romania and the International Monetary Fund, and the National Bank and the Romanian Association of Banks were consulted about them.