Romanian President passes giving in payment law

Romanian President Klaus Iohannis has recently passed the new law that enforces giving in payment as a way to close mortgage loans. The President initially sent the law back to the Parliament earlier this year, with some comments. “At that time, in my opinion, the law was not drafted well. The Parliament took into account the observations I’ve sent, amended the law correctly and resent it in the new form. I’ve appreciated the fact that the Parliament took into account my observations, and I believe that the law, in this current form, is ok. Therefore, today I passed this law, which will be published in the Official Gazette also today,” the President said during a press conference. The Chamber of Deputies voted in favor of the bill two weeks ago. The law’s new form includes some important changes. For example, it doesn’t include the First House program anymore, which means that those who take mortgage loans through this program can’t use giving in payment to close the mortgage debt. The maximum threshold for which the law applies also increased from EUR 150,000 to EUR 250,000. The law has been strongly opposed by Romania’s National Bank (BNR), by commercial banks, and business organizations. Top bank CEO explains how the new law on mortgage loans will change the lending process in Romania International investors, concerned about Romania’s law on mortgage loans Save the Children NGO, unhappy with Romania’s new law on mortgage loans. Irina Popescu, irina.popescu@romania-insider.com (photo source: Presidency.ro)