Isarescu said that banking officials should be able to explain that the resorting to the payment in kind is similar to the return to tradeoff, adding that the banks in the Romanian Banking Association (ARB) are mostly guilty as they have “definitively” forgotten the essence of the banking activity.
The central bank head said, during a conference marking 25 years since the re-opening of the currency exchange market, that he disagrees with the idea that the banks don’t want to take risks, as the banking activity is a risky activity by definition.
According to the bill on giving in payment, the debtor can resort to the payment of the mortgage loan with the mortgaged property if the loan was guaranteed with two or more properties.
The bill will most likely be debated by the Senate next week.