Romanian banks are determined to help local borrowers hit by the coronavirus crisis to cope with their loan repayments, but “generalized moratoriums” could weaken the banking system, the banking association ARB said, quoted by Reuters.

The government said banks could allow monthly loan repayments to be postponed for up to nine months for individuals and companies affected by the epidemic.

“The economy needs individualized solutions for clients and we recommend avoiding generalized moratoriums … that are not properly calibrated and which enforce ‘universal’ measures for postponing repayments, even for up to 9 months,” the ARB and the banks’ employers association CPBR said in a statement.

“(This) can lead to a serious deterioration of liquidity in the banking system, and this does not solve the diversity of situations that clients face.”

Official data showed about half a million unemployment requests have so far been filed by Romanian workers to the government’s labor offices since the start of the coronavirus outbreak in March.