www.mediafax.ro/economic/mecanism-de-compensare-de

The Ministry of Finance has approved a compensation mechanism of 2 billion lei to help local authorities, public institutions, and hospitals settle their debts to suppliers. Applications can be submitted until November 25, 2026. The mechanism allows local administrations to clear their debts simultaneously with the tax obligations of suppliers to the state budget. This initiative aims to break the cycle of debts affecting companies that have provided services to local authorities. As of August 31, 2026, local budget arrears amounted to 612.9 million lei, primarily due to local budgets. The mechanism includes payments for goods, services, and works, as well as tax obligations to the state. The Minister of Finance emphasized that this measure supports both local authorities and businesses, facilitating debt clearance without additional pressure on local budgets.