Romania's controversial giving in payment law, which has triggered waves of criticism and concerns from various sides, will become effective mid-May.

The law was published in the Official Gazette on Thursday, April 28, and will enter into force in 15 days.

It introduces giving in payment as a way to discharge mortgage debts. The final form, voted by the Chamber of Deputies two weeks ago and recently passed by the President, includes several changes.

The law doesn’t include the First House program anymore, which means that those taking loans through this program can’t use giving in payment to close mortgage debt. The maximum threshold for which the law applies also increased by EUR 100,000, from EUR 150,000 to EUR 250,000. The law will also apply to those who are in the process of foreclosure.

Romania’s National Bank BNR, as well as investors, commercial banks and business organizations, have opposed the law.

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Irina Popescu, irina.popescu@romania-insider.com