Banks in Romania prefer personal insolvency law to new mortgage law

Local banks’ representatives have asked authorities to speed up the personal insolvency law’s enforcement. In December 2015, the authorities have decided to postpone the law’s enforcement for a year. The banks have also asked the authorities not to rush the voting and implementation of the new law on mortgage loans, which is now being debated in the Parliament. Banks’ representatives consider that the personal insolvency law has a major advantage upon the mortgage law. Both laws deal with situations when debtors are not able to pay for their loans anymore. The personal insolvency law allows any citizen who can’t pay his debts, but not out of his fault, to reschedule his debts over a period of five years and keep the mortgaged assets. The law on giving in payment, initiated by the MP Daniel Zamfir, allows the mortgage debtors to get rid of their debts by giving the mortgaged assets to the banks. editor@romania-insider.com