Romania changes lending rules for mortgage and consumer loans in EUR

Banks in Romania will ask for a down payment of at least 25 percent for mortgage loans in EUR and 40 percent for loans in other currencies, in case of individuals who do not get paid in the same currency as the loan, according to a new regulation from the country's Central Bank (BNR). The First House lending program will not be covered by this regulation.

For consumer loans, the maximum term will be five years and those who want a loan will have to show guarantees of at least 133 percent of the value of the loan. The new regulation was enforced from October 31. The rate of overdue loans registered by Romanian companies and individuals grew to 7.4 percent of the total bank debt, reaching EUR 4.4 billion in July this year, according to the Romanian Central Bank (BNR). The total balance of loans and banks commitments also rose in July to EUR 67.7 billion. About 962,000 individuals and companies have at least one credit of more than around EUR 4,700 (RON 20,000). editor@romania-insider.com