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EXCLUSIVE: Romania Govt To Ensure Consumer Loan Ordinance Won’t Affect Ongoing Contracts

The Romanian government agreed to work with the parliament to ensure that its emergency ordinance 50/2010 on consumer loans protects both consumer and bank rights, according to the country’s additional letter of intent to a EUR13 billion loan agreement with the International Monetary Fund.
EXCLUSIVE: Romania Govt To Ensure Consumer Loan Ordinance Won’t Affect Ongoing Contracts
Oana Gavrila
17 nov. 2010, 14:07, English

„We will work with the parliament to ensure that the emergency ordinance 50/2010 improves transparency and protects consumer rights while safeguarding the stability of the financial system and guaranteeing compliance with EU Directive 2008/48/EC,” the government said in the letter, which was obtained by MEDIAFAX Tuesday.

„At the same time, we will ensure that the central bank is the only agency authorized to regulate banks’ lending activity,” the executive added.

The government said the ordinance will be amended so it doesn’t apply to existing contracts.

Romania’s government adopted in June an emergency ordinance regarding consumer loans, which transposes the EU’s 2008/EC/48 directive into the local legislation. The new act applies to existing loans and the banks denounced the measure as abusive.

Officials of the European Commission and the International Monetary Fund repeatedly insisted Romania changed its consumer loan ordinance so it doesn’t endanger financial stability.