April 26, 2016
Romanian Parliament passed a new law allowing the unfortunate borrowers to get rid of mortgage debt. Originally, the law was approved in November 2015. However, the President exercised his right and sent it for retrial. Since a new mortgage law overwhelmingly passed in the Parliament and was adopted, it is possible to challenge it only in the Constitutional Court.
The legislation allows the debtor to return the banks the bought property in exchange for the cancellation of all debts. As a result, they do not have to pay to the banks, even if the price of the property does not cover the entire loan amount. The law will apply only to newly issued loans in the amount of less than € 250 000. Under this category falls more than 99% obtained in Romania mortgages.
While borrowers are pleased with the new rules, critics portend a big problem in the near future. Ruler of the Central Bank of Romania, Mugur Izeresku claims that he never saw bigger risks for the Romanian economy over the past 25 years. One of the obvious consequences is the increasing of down payment amount on the mortgage. The representative of the European Commission, IMF and European Central Bank are against the law.
Based on the materials of actmedia.eu