IMF: Romania Should Change Consumer Loan Ordinance

The consumer loan ordinance should protect customers, but it shouldn't endanger financial stability, IMF mission head Jeffrey Franks told reporters.

"I'm optimistic we will find a solution to observe both objectives," he added.

Istvan Szekely, European Commission's country head for Romania, said in turn the authorities in Brussels understand the need to better protect consumers, particularly in the financial and banking sector, but the banking system must remain solid.

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

Last week, Franks said the country must bring its consumer loan legislation in line with European standards as a precondition to receive a new loan installment from the IMF.

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