Deputies decided that the government-backed mortgage lending First Home program will not remain subject to the provisions of the law, while the maximum ceiling which will be considered when enforcing the law will increase from EUR150,000 to EUR250,000.
The law will also be applicable to properties subject to foreclosure procedures.
The law on debt discharge will be sent to President Klaus Iohannis for promulgation and the only way to be appealed would be at the Constitutional Court.
The law allows retail mortgage borrowers to return real estate collateral to banks in exchange for writing off their loans. Central bank governor Mugur Isarescu warned last week that 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.