Law on debt discharge: Senators rejected BNR’s amendments

Senators from Budget- Finance Commission rejected on Tuesday the central bank’s proposals for amending the draft law on debt discharge.

National Bank of Romania (BNR) has proposed a limit of EUR 150,000 of the loan guaranteed by mortgage on a property for housing purposes, which corresponds to a dwelling of EUR 200,000.

Also, the central bank wanted a criterion according to which the credit rate to be of over 65 percent of revenues.

Practically, senators rejected BNR’s proposals as well as those of the Romanian Banking Association (ARB) and have kept the original form of the law proposed by Liberal MP, Daniel Zamfir.

According to BNR’s deputy governor Liviu Voinea attending the Commission’s talks, at national level, those who could benefit from the law on debt discharge will give up on advances and fees paid to banks so far of about RON 10 billion, about EUR 2.2 billion.

Currently, the commercial banks have 5,230 cases of foreclosed properties and other 316 have occurred.

Without law on debt discharge, about EUR 6 billion would be recovered from the sale of foreclosed homes and partial payments from debtors.

amendmentsBNR’s deputy governor Liviu VoineaBudget- Finance Commissioncommercial banksdebtorsdraft law on debt dischargedwellingforeclosed homesLiberal MP Daniel ZamfirmortgageNational Bank of Romania (BNR)partial paymentsRomanian Banking Association (ARB)senators
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