Debt discharge and conversion laws, lower risks for financial stability

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The laws on debt discharge and conversion of foreign currency loans in lei represent decreasing risks for the financial stability, Liviu Voinea, deputy governor of the National Bank of Romania (BNR) said on Tuesday, presenting central bank’s Report on Financial Stability for 2016.

This although in last year’s Financial Stability Report, the laws mentioned above represented maximum intensity risks.

At end-October, the Constitutional Court (CCR) judges have admitted several exceptions to the law on debt discharge and rejected others, CCR President Valer Dorneanu adding that it can be said that the law is partially unconstitutional.

On the other hand, Valdis Dombrovskis, Vice-President of the European Commission for Financial Stability, Financial Services and Capital Markets Union, stated recently that the law on Swiss franc (CHF)-denominated loans conversion into the local currency must be implemented very carefully in Romania.

Another risk for the financial stability, but without an extreme intensity is given by “the uncertainty of budgetary structure” in the context of political changes of these days.

BNR data show that country’s economic growth is sustainable, because the imports grew at a slower rate than the domestic consumption, the offer managing to cope in an increasingly better domestic demand.

Financial Stability Report for 2016 concludes that the solvency of the banking sector is high, liquidity remains adequate, while profitability has been enhanced.





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