Romanian senator launches new draft bill to cap interest rates

24 May 2019

Romanian senator Daniel Zamfir, the author of the three bills on capping the loan interest rates (also known as “the laws against usury”) that were invalidated by the Constitutional Court (CCR), resumed his efforts and drafted a new bill with broadly the same aim. Notably, the CCR invalidated the laws on grounds related to the procedure, not their content.

Among the provisions Zamfir included in the new bills, there is a cap on interest rates for retail loans, a special right given to debtors who want to repay their debt at the discounted value charged by bank to a third party (typically a debt recovery firm), and weaker repossession rights for the bank regarding the collaterals, Profit.ro reported.

Furthermore, Zamfir added more constraints such as a ban on the foreign currency loans, besides the conversion of the outstanding forex loans at the exchange rate on the day the credit was extended plus a maximum 20% of the exchange rate differential. Zamfir aims that the law should apply to outstanding debts as well.

Hotnews.ro mentions that Romania’s National Bank (BNR), in a letter sent to the Parliament, said that it would assist lawmakers in drafting regulations similar to those inked by senator Zamfir if they didn’t have “disruptive effects” on the financial markets. The news service in a comment dedicated to Zamfir’s bill outlines the similar interest rate restrictions set in European Union countries.

editor@romania-insider.com

(Photo source: Pixabay.com)

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Romanian senator launches new draft bill to cap interest rates

24 May 2019

Romanian senator Daniel Zamfir, the author of the three bills on capping the loan interest rates (also known as “the laws against usury”) that were invalidated by the Constitutional Court (CCR), resumed his efforts and drafted a new bill with broadly the same aim. Notably, the CCR invalidated the laws on grounds related to the procedure, not their content.

Among the provisions Zamfir included in the new bills, there is a cap on interest rates for retail loans, a special right given to debtors who want to repay their debt at the discounted value charged by bank to a third party (typically a debt recovery firm), and weaker repossession rights for the bank regarding the collaterals, Profit.ro reported.

Furthermore, Zamfir added more constraints such as a ban on the foreign currency loans, besides the conversion of the outstanding forex loans at the exchange rate on the day the credit was extended plus a maximum 20% of the exchange rate differential. Zamfir aims that the law should apply to outstanding debts as well.

Hotnews.ro mentions that Romania’s National Bank (BNR), in a letter sent to the Parliament, said that it would assist lawmakers in drafting regulations similar to those inked by senator Zamfir if they didn’t have “disruptive effects” on the financial markets. The news service in a comment dedicated to Zamfir’s bill outlines the similar interest rate restrictions set in European Union countries.

editor@romania-insider.com

(Photo source: Pixabay.com)

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