The uncertainties around the giving in payment law determined consumers to submit more mortgage loan applications under the First House program, which led to an increase in real estate deals and financial intermediation services in the first quarter of the year, according to UniCredit Bank Romania.

This was one of the factors that contributed to the higher than expected economic growth in the first quarter. Romania posted a 4.3% economic increase in Q1 2016 compared to the same period of 2015.

The giving in payment law went into force on Friday, May 13. Most of the top ten banks have increased the down payment for mortgage loans, and other plan to do this in the next period as an effect of the new law.

The First House program will not be affected, however, as it was removed from the giving in law payment.

editor@romania-insider.com