Lower Chamber MPs have adopted the debt discharge law, with 207 votes in favour and 1 against. The law mainly concerns the discharge of debt owed to commercial banks through the enforcement of the charge levied on real estate assets in order to secure the payment of the debt.
The law will be applied to those who contracted mortgage loans for the purchase of a house or of a plot of land and even in the case of personal loans secured through mortgage. Likewise, the law will also be applied to persons that are currently facing foreclosure.
Lawmaker Daniel Zamfir, the initiator of the law, stated on Wednesday that the draft debt discharge law was not thought out as being against the banking system and will be a law that will bring balance to the relations between banks and their clients. “I didn’t think it out as a law against the banking system, on the contrary. It was meant to be and will be a law that will bring balance to the relations between banks and their clients. I didn’t think it out as a welfare law for certain underprivileged categories, because those who are in need today are not underprivileged categories, they are active people, people that have maybe two or three jobs, but who, because of abusive terms, are no longer able to pay their instalments,” Zamfir stated.
Commercial banks and the National Bank of Romania consider that the law will cause damage to the banking system and warn that after the law comes into force the worst affected will be the Romanians who will want to contract mortgage loans other than the First House loans, since the terms will grow harsher.
After the law has been voted in Parliament, only the Ombudsman, the High Court of Justice (ICC) and the Romanian President are the institutions that can ask the Romanian Constitutional Court to verify the constitutionality of the law. The Romanian Bank Employers’ Council (CPBR) will ask all of these institutions to do so.