New law in Romania: Debtors get rid of debts if they give their homes to banks

Romania’s Chamber of Deputies has approved the law that defines giving in payment, allowing the mortgage debtors to get rid of their debts to banks by giving the mortgaged assets to the banks. Local bankers say that the law violates the Constitution and that it will bring them big losses and limit the access to financing. The deputies adopted the law on November 25 with 233 votes “for”, one vote “against” and one abstention. “It is the happiest day in my life as MP. Thank you in the name of the 800,000 families in Romania,” said MP Daniel Zamfir, who initiated the draft law, reports local Profit.ro. He probably referred to the 800,000 Romanians who have debts to banks. T he law will enter into force as soon as President Klaus Iohannis approves it and it’s published in the Official Gazette. However, bankers have asked the President to send the law back to the Parliament for review, pointing out that the new law would hurt local banks and force them to curb down mortgage lending by making it more expensive to get such loans. editor@romania-insider.com