Speaking at the presentation of the central bank’s report on the country’s financial stability, Isarescu said recent legislation proposals targeting the banking system add up to severe systemic risk.
“Initiatives that target retroactive changes to aspects of the banking system have become more frequent over the past six months. The debt discharge law is the most widely known,” said Isarescu.
He added there are other legislation initiatives that risk breaching property rights, contradicting the fundamentals of a market economy, that could lead to instability.
The debt discharge bill, which is pending a vote in Parliament, would allow retail mortgage borrowers to return real estate collateral to banks in exchange for writing off their loans.