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Report: Romanian lawmakers pass mortgage discharge law

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Report: Romanian lawmakers pass mortgage discharge law

Romania'sparliament passed a controversial mortgage discharge bill that may see the country's bankslose significant revenue, Reuters reported April 13.

The law isnow sure to come into effect soon given that President Klaus Iohannis alreadyused his one-time power to send it back for re-examination. At that point, thetext was amended to limit the scope of the rule to loans of up to €250,000, butbanks still fear that it will encourage many customers to walk away from theirdebt.

Yet,analysts from BancpostSA, a subsidiary of Greece's Eurobank Ergasias SA, said that following the amendments,"there won't be too many people exercising the rights provided by thelaw" and "the impact won't be that high on banks' bottom lines,"Bloomberg News reported the same day.