New draft of rules on loans for consumption and granting mortgage loans
The National Bank of Romania has published the new draft set of rules on loans for consumption and granting mortgage loans. Down payments for real estate loans will be increased considerably, according to the document. Guarantees will have to amount at least 133% of the borrowed sum in the case of mortgage loans for consumption. As compared to the previous 20-year period, Loans for consumption will be granted for a period of 5 years at the most. The new draft set of regulations is published by the National Bank of Romania shows customers will have to provide loan guarantees of 133% of the borrowed sum.
Mortgage loans for consumption will be treated like other consumption, according to the new rules. Down payments will amount to 30 percent for loans in Euros, 15 percent of the building’s value in the case of loans granted in the Romanian currency, and 40 percent in the case of other currencies in the case of real estate loans.
In order to keeps the indebtedness rate below the maximum level set under their financing standards throughout the duration of the loan banks will be obliged to work out risk scenarios. The Romanian analysts believe that the new project could have negative effects on the economy, although being well intended.