Olteanu, BNR: Predominant opinion of personal Bankruptcy Law, liquidators’ way of manipulation

The predominant opinion of the Personal Bankruptcy Law is that it is a method of manipulation used by interested market operators, Bogdan Olteanu, Vice-Governor of the National Bank of Romania, believes.
In an interview for Agerpres, he said neither debtors nor creditors have high stakes in this law. “I know of no relevant situations in which debtors and creditors have failed to reach a compromise on essential goods. If someone buys more TVs than they need, they undergo enforcement procedures, normally. But I haven’t been confronted with a situation in Romania in which a person was forced to leave their house,” the central bank representative argued.
According to Olteanu, the risk of passing this law is that a large part of the amounts retrieved from the insolvent party goes to the liquidators. “Those who support the Personal Bankruptcy Law are neither debtors nor banks, but liquidators. Liquidators who do not work voluntarily,” the vice-governor of BNR stressed. He went on to say more than half of the money retrieved from debtors in cases of commercial liquidations goes to liquidators as part of liquidation fees, not to the creditors.
“This means debtors are still in debt to the creditor, even though they are already paying and diminishing their fortune. For this reason, whenever we introduce laws, we should pay close attention to who stands to benefit from their application. Mechanisms to ease the payment schedule, for instance, can be devised if necessary, but the effects of this measure should benefit debtors, not a third party who comes between debtors and creditors. In my opinion, this law was created by interested parties, liquidators,” Olteanu explained, underlining that BNR was not consulted with respect to this parliamentary initiative by the bodies who created the law, although the Government requested assistance in formulating an official opinion.
Olteanu also commented on abusive clauses contained in loan agreements, emphasizing the number of lawsuits between banks and debtors in this respect could increase in the near future. “It’s obvious as long as abusive clauses are referred to in court orders, they will be eliminated,” he added.
On the other hand, when asked whether he is considering running for a new term as vice-governor of the central bank, Bogdan Olteanu replied he would think about it over the course of summer.

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