Romania’s National Bank (BNR) is aiming to curb lending and lower default risks. Thus, it has drafted a set of amendments to current lending rules, which is currently submitted to public debate.
“The national bank aims a lower lending speed. Loans will still increase, but as a result of the new rules, the quality of client portfolios will improve, BNR Governor’s advisor, Adrian Vasilescu, told Business Standard.
According to new regulations, the maximum income taken into account when granting a loan cannot exceed 20 percent against the income for which the debtor paid taxes in the past 12 months. Thus, BNR aims to prevent a scheme used by employees to have their salaries fictitiously increased for the purpose of obtaining a loan.
The maximum rate is also limited by the market’s evolution in the past 18 months. Thus, the highest level of interest and fees, and the worst exchange rate for the client are considered.
