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President Iohannis promulgated amended Giving in Payment Law


Romania's President Klaus Iohannis signed, on May 13, the revised Giving in Payment Law, by which a debtor is discharged of any obligations toward its creditor by handing over the property subject of the mortgage loan.

The revised law establishes precisely the minimum depreciation of the local currency for which the foreign exchange evolution can be considered unpredictable, allowing the debtor to invoke the bill and pass the property to the bank with no further obligation, Economica.net reported.

Throughout the legislative process, the law stirred reactions from both politicians and the banking sector.

Local banks have warned that the giving in payment law, along with seven other legislative initiatives with an impact on the banking system (interest ceilings, credit conversion, suspension of interest payments, or the elimination of the enforceable title), would impact the economy and decrease lending.