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EU Asks Romania For Details On Consumer Lending Ordinance

The European Commission sent Romanian authorities a letter asking for further details on the transposition of a European directive into local legislation through Government Emergency Ordinance 50/2010 on consumer lending contracts.
EU Asks Romania For Details On Consumer Lending Ordinance
Andrei CîrchelanBogdan Neagu
05 oct. 2010, 14:13, English

The document was sent to the local Department for European Affairs, and, according to government sources, it is the first step in a potential infringement procedure.

Central bank first deputy governor Florin Georgescu confirmed that the European Commission approached local authorities regarding the provisions of Ordinance 50.

People close to the matter told MEDIAFAX in August that local lenders could request infringement procedures against Romania should Ordinance 50 apply to loans already unfolding, or if it does not stick to implementing the European Directive alone.

Government Emergency Ordinance 50/2010, on consumer lending contracts, transposes EU Directive 48/CE/2008 into local legislation. Provisions include the removal of the early repayment fee on loans with variable interest, and the calculation of interest using a transparent reference index, added with a fixed margin, which is established in the initial contract.