Analysts about law on debt discharge: Lending to drop significantly

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Banking financial analysts say that law on debt discharge in the present version may cause negative effects on lending through the unpredictability of the legislative framework and reducing contractual and property rights of the creditor, according to a survey conducted by the Association of Financial-Banking Analysts in Romania (AAFBR), a press release informs on Wednesday.

67 percent of the surveyed analysts consider that lending might reduce to a significant extent due to the tightening of the number of eligible customers or due to creditors prudent growth.

At the same time, 53 percent of analysts see that theis law causes strongly negative effects, in terms of macroeconomic, investments or general prosperity of the population.

The survey shows that 50 percent of analysts expect the real estate and construction sector blocking as well as diminishing consumer’s confidence.

“The current situation is marked by uncertainty and mistrust, which causes a considerable disruptive potential,” the analysts warn.

Meanwhile, Senators of Economic and Legal reunited commissions decided that ‘First House’ program to remain in law on debt discharge. They rejected several proposals of Romanian Banks Association (ARB) and National Bank of Romania (BNR).

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