Romanian Central Bank official: Swiss Franc loan conversion dangerous for banks

Imposing the conversion of loans in Swiss Francs at a different exchange rate than on the transaction day could cause losses for banks. Some banks could run the risk of bankruptcy if they convert loans at the historical exchange rates, said Nicolae Cinteza, Director of the Supervision Department within the National Bank of Romania (BNR). "It is not possible to solve things through a law that sets the conversion at a different rate than the one on the transaction date," Cinteza said, cited by local Mediafax. Commercial banks see the conversion to another exchange rate as unconstitutional, Cinteza added. editor@romania-insider.com