RO Constitutional Court rejects banks' objections to "giving in payment" law

The Romanian Constitutional Court motivated the decision taken in July rejecting the banks' appeals regarding the new form of the Law on giving in payment.

Under this law, debtors can terminate the contract (with no further consequences) by simply transferring to the creditor (the bank) the ownership of the good purchased under the financing contract.

The Court points out that the courts will automatically have to find that there is an unforeseen situation (the sole trigger for the giving in payment law) when the foreign currency used in the lending contract has strengthened by more than 52.6% since the date of the loan (as in the case of loans in Swiss francs), or the monthly instalment has increased by more than half as a result of rising interest rates, Profit.ro reported.

Both the debtors and the creditors will have the right to request the adaptation of the contract within the giving in payment procedure, and the judges will pronounce the solution without assessing the material situation of the debtor (as requested by banks).

(Photo source: Inquam Photos/Octav Ganea)