Romania Govt Unlikely To Change Consumer Loan Act - Sources

"The government has no reason to amend the legislation, because the retroactivity principle doesn't apply. The act doesn't breach the EU standards in the field," the people told MEDIAFAX.

According to them, Romanian banks will "most definitely" be forced to eliminate early repayment fees for ongoing loans with variable interests.

Romanian bank customers may file legal actions against lenders who fail to change interests according to the new EURIBOR/ROBOR/LIBOR reference or who increase their fixed margins, despite contrary opinions issued by the consumer protection authority ANPC, a central bank official said Thursday.

"The government must amend the Ordinance 50/2010 regarding consumer loans, at least so they can include ANPC's opinion sent to the banks, because the opinions alone cannot change the laws," said Nicolae Cinteza, head of the Surveillance Division with the central bank.

Without a government-approved amendment to the law, Romanian banks are poised to lose all possible court actions against them, Cinteza said.

ANPC said Wednesday local banks are permitted to increase their fixed margins for ongoing loans with variable interests so interest rates can stay at levels prior to the implementation of the EURIBOR/ROBOR/LIBOR reference.

In June, the government approved the emergency Ordinance 50/2010 regarding consumer loans, based on a document drafted by ANPC. The act transposes a European directive into the local legislation which eliminates early repayment fees for loan with variable interests.

The Ordinance in subject to parliament approval this fall.

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