“I don’t know of any country that forbids cash transactions, despite a large number of states being affected by the grey economy and money laundering. I understand that paying cash for land transactions is punishable by fine,” Isarescu told reporters.
“The road to hell is paved with good intentions.”
He said banning cash payments for land transactions would only increase an already thick bureaucracy.
“You don’t know how many formalities there are to purchase a plot of land, or maybe those who drafted the bill don’t know it. But we keep wondering why there are so many abandoned areas,” Isarescu said.
The government plans to forbid cash transactions for purchasing cars, homes and land, regardless of their value, and wants to introduce fines of up to 20% of the deal’s value for both the buyer and the seller, according to a draft ordinance obtained by Mediafax.
Additionally, the government will impose new ceilings on daily cash transactions between companies and between population and companies.
Prime Minister Victor Ponta earlier this week confirmed the information. However, he said the measures would no longer be enforced through government ordinance, but would be sent to the parliament for approval instead.