A person could transfer the mortgaged property to the bank and have the debt deleted, when he’s no longer able to pay his credit.  This provides a draft law initiated by a group of 156 MPs.

“Everyone wins,” said national liberal MP Daniel Zamfir, one of the project’s initiators, cited by local Mediafax.

The draft law follows the European directives on this matter, said Gheorghe Piperea, a lawyer who contributed to drafting the bill.

Banks would benefit from this law, as they have losses of 90% when they sell their non-performing loan portfolios. If the mortgaged properties can be rapidly transferred to banks, their losses would amount to only 40-50%, Piperea added.

editor@romania-insider.com