All small businesses in Albania will be allowed to delay rental payments by two months, according to a decision taken by the Council of Ministers last night.
Businesses that are closed and those that are still operating will be able to avail themselves of the decision. The decision was made in light of the ongoing Coronavirus pandemic that has resulted in strict lockdown measures throughout the country.
The Normative Act has been changed to include both operational and non-operational payments. It originally only applied to businesses that are currently closed.
The two months of arrears will be paid after May, in proportion and in agreement with the landlord. For those whose contracts expire before 31 May 2020, the arrears must be paid by the tenant within three months from the end of May. The condition for benefiting from the Act is to have a regular lease contract.
The decision proved unpopular with many as families of landlords often rely on the rental income. Not having this revenue stream for at least two months could impact their ability to provide for their families.
Exit has previously explained that the Normative Act is not valid as it changes one of the main obligations of the lease contract, as stipulated in the Civil Code.
Article 812 states that one of the obligations of the lessee is to pay the rent within a time limit set between the parties, not the state. Furthermore, the Civil Code can only be amended by the Assembly with a three-fifths majority and not by a Normative Act.
This was confirmed by a case before the Constitutional Court in 2014. The decisions of the Constitutional Court are binding and any act that contradicts them is illegal. Therefore, the government’s normative act to postpone the payment of rent is invalid and cannot be enforced.
