“We have good news following talks with the central bank. The new lending regulations will not affect house purchasing, for which the existing terms still apply,” Radu Gratian Ghetea told the Romania Financial Forum 2011 organized by Mediafax and the central bank.
The central bank has drafted a set of measures to limit consumer loans in foreign currency. The new rules stipulate Romanian banks will have to reduce the maturity of consumer loans to five years from 20 currently, while extending minimum guarantees to 133% of the loan’s value.
Moreover, banks will not be able to provide mortgage loans unless clients pay at least 30% upfront for financing in euros and 15% minimum for leu-denominated loans. The down payment for lending in other foreign currency was set at 40% minimum.
Commercial banks have raised several objections to some of the new lending provisions and requested they meet with the central bank to discuss them.