National Bank of Romania (BNR) decided on Wednesday to limit the level of indebtedness for the loans granted to individuals, for both mortgage and consumer loans, which is a premiere after 2007. According to the new regulations, the maximum level of indebtedness will be 40% of the net income for the loans in RON and 20% for the loans in a foreign currency, BNR mentions in a press release. The total level of indebtedness is calculated as a weighted average of the total monthly payment obligations related to the monthly net income. The maximum indebtedness rate is increased by 5% for the loans granted for purchasing the first home to be occupied by the borrower. The regulation is applied to both the banking institutions and to the NBFIs and will enter into force on January 1, 2019. The Central Bank underlines that similar measures have been already adopted in other countries such as Hungary, Poland, Estonia, Lithuania, Czech Republic. According to BNR, the main objectives pursued by this regulation are: To simplify the access to loans for individuals and consolidate the sustainable growth of lending. According to the new calculation methodology, the level of the loan and the corresponding rates will be easily established by any applicant. To protect the people with average incomes and with incomes below the average values, namely to improve the payment capacity, for a healthy lending. Anyone who wants a loan, can calculate the monthly amount he can pay as a rate to banks and NBFIs, according to BNR. What happens to the loan applications submitted and not solved yet? All the loan applications submitted before January 1, 2019, including those corresponding to governmental programs dedicated to customers who are individuals, such as the First Home program, will be solved based on the regulation in force at the time when they were submitted at the bank, even if the loan will be granted after January 1, 2019, BNR explains. Another question which probably many Romanians who already have loans have in mind is: will it be possible anymore to refinance a loan? NBR mentions that all the loans granted exclusively to reimburse the debts corresponding to the loans contracted before the entry into force of the draft regulation are excepted from the new requirements on the level of indebtedness. However, this is not available for the refinancing which involves granting an additional loan to the existing one(s). The Central Bank also explained that the estimated impact of the new regulation is insignificant on the economic growth. The first time when BNR introduced explicit limitations of the level of indebtedness was in 2004, when the threshold was 30% for the consumer loans and 35% for the real estate loans, as well as a minimum level of 25% for the advance related to the real estate loans. In March 2007, BNR eliminated the explicit limits of the level of indebtedness and of the advance, which were going to be established by each bank under the risk regulations, and later it justified that the measure was necessary as a result of the EU membership.
The post BNR has limited the level of indebtedness: Rates can no longer exceed 40% of the salary for the loans in RON, and 20% for the loans in euros appeared first on Nine O' Clock.
Ireland can be seen as one of the most important business hubs in Europe and the European Union, as many international companies have established regional headquarters there. If you are looking for a country to expand your enterprise, you should definitely consider Ireland for several reasons that are presented below. Location and language The first […]
Cyprus is mostly known as a tourist destination. However, there is also a business side to it, as many investors choose it to open companies because of the favorable taxation system. Apart from its low corporate tax rate, there are a few more reasons why you should choose it if you are looking for a […]
The Romanian Commercial Code provides for various types of entities that can be created by natural persons and companies, local or foreign. Each of them has its own particularities, which can give it various advantages. How do you choose among them? We will review the main types of companies and their pros to help you […]
A new alley named after Romanian diplomat Nicolae Titulescu was inaugurated on Tuesday, December 9, in Paris’s Parc Monceau during a ceremony attended by Romania’s president Nicușor Dan and Paris mayor Anne Hidalgo. “I expressed my appreciation for the decision to name an alley in the beautiful Parc Monceau in Paris after the great Romanian […]
Oxygen Resort, a development located in central Romania’s Harghita county, has inaugurated its first bungalows. The first 18 bungalows are already functional, with another 17 units to be completed in the next stage, bringing the total to 35. The inauguration of the bungalows “marks the transition from a center dedicated predominantly to recreational activities to […]
Romania carried out a new medical evacuation mission for civilians from Gaza on Monday, December 8, transporting eight Palestinian patients and 29 accompanying relatives to Bucharest for treatment, according to the Department for Emergency Situations (DSU). The patients were evacuated aboard a Romanian Air Force C-130 Hercules aircraft after lacking access to adequate medical care. […]
