According to the legislative proposal, when the value of the initial loan is exceeded by 20%, the banks will have to inform the consumer, who can opt for the conversion of the loan into any other currency considered more advantageous.
The authors of the proposal said that non-performing loans and debts to the banks became a social issue in Romania as debts to the banks rose tenfold between 2008 and 2012, according to statistics.
Currently, consumers should bring supplementary guarantees to the banks for converting foreign currency loans into local currency loans, as the value of the real estate market fell sharply in the past years.
“The exposure of foreign currency loan consumers to the risks triggered by the exchange rate fluctuations should be corrected by steps targeting to protect them (…),” according to the proposal.
The legislative proposal filed Tuesday at the Senate is currently under public debate.