IMF Worried About Retroactive Consumer Loan Norms In Romania

Franks said the Romanian authorities agreed to consider implementing the norms only for new loans.

„We’re optimistic we can find a solution,” Franks said after a meeting with officials of Romania’s consumer protection authority ANPC.

Romanian government approved in June an emergency ordinance regarding consumer loans, based on a document drafted by ANPC. The act transposes a European directive into the local legislation.

The ordinance eliminates early repayment fees for loans with variable interests and introduces a new calculation method for interests, based on a transparent reference index plus a fixed percentage, which cannot be modified throughout the duration of the contract.

ANPC extended the directive’s stipulations to also cover existing loans, forcing the banks to amend approximately 8 million loan contracts.