The evolution of the current crisis requires fast action from companies affected, their agility and adaptability in navigating this stressful period proving to be essential in the survival of the company. As part of their immediate action plan, affected companies should consider the following:
>> Reviewing and, as the case may be, renegotiating contracts with both suppliers and clients as regards payment terms, events of default and force majeure clauses;
>> Applying for emergency certificate – this certificate issued by the Ministry of Economy, Energy and Business Environment is required in case companies want to obtain deferred payment of utilities or rent, by invoking force majeure. Eligible companies are those whose activity was totally or partially interrupted based on the decisions issued by the competent public authorities as well as those that prove that, due to the effects of the pandemic, registered in March 2020 a decrease in revenues with at least 25% compared to the average of the revenues from January-February 2020;
>> Reassessing their financial forecasts and analyzing whether it is advisable to apply for state aid or postpone the payment of credit instalments, in accordance with the legal provisions;
>> Considering whether sending employees in technical unemployment – in order to implement such measure, the employer must submit a statement on own responsibility attesting the interruption of the activity due to the COVID-19 pandemic. We note that this was a solution adopted by many companies in Romania. However, we recommend analyzing thoroughly before proceeding to this measure as matters regarding employment relations are rather sensitive;
>> Adjusting the business plan – as in many other countries, some Romanian companies have pivoted in order to keep their business afloat. Small and medium-sized businesses, especially those with a technical component, have been quick to readjust their business to the new economic environment and have either gone remote or changed their production in order to meet the new market needs.
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