Romania's government will set the legal framework for voluntary restructuring of bank loans for low-income households, under which the state would directly subsidise part of the recipients' repayments in 2015 and 2016, PM Victor Ponta confirmed. The programme would leave some RON 4bn [ EUR 890mn ] in households' pockets this year alone and will cost the budget no more than 0.1% of GDP per year in 2016-2017, according to the estimates made by the government so far. The move is aimed at stimulating private consumption. Some 1mn bank debtors qualify for the schema, according to the government's estimates. Individuals with revenues below the average net wage will be eligible to benefit from the would-be programme, under which loans would be restructured so that the monthly payment halves* over a two-year period. The repayment period is also extended by two years. The restructuring is voluntary on both sides – the bank and the creditor. After two years, the government gives the debtor a tax credit of up to RON 200 per month. * The decrease in monthly payment is, however, capped at RON 500 per month, so that those with monthly installments above RON 1,000 would have their payments decreased by only RON 500.
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