Romanian Leasing Companies Ask President To Reject Flawed Legal Amendment

"We have called on the Presidency and asked the president not to promulgate this draft amendment to Government Ordinance 51/1997, approved through Law 287/2006. The draft document was passed in the Chamber of Deputies, even though it had been rejected in all previous deciding structures. To our understanding, the procedure was flawed," said Thursday the secretary general of the Romanian Financial Companies Association (ALB), Adriana Ahcearliu.

She added the promulgation of this law would affect competition since it states installments become fixed and monthly and leasing contracts will unfold over an undetermined period.

"A fixed rate is imposed, with disregard for the effective annual interest rate, which can be variable. Leasing cannot unfold over an undetermined period, because leasing, in itself, entails a determined duration, at the end of which the client buys the asset in question," Ahcearliu said.

The draft amendment was initiated by a group of five MPs, and was rejected by the Senate and the special committees, the Ministry of Finance, Government, central bank and the economic committee within the Chamber of Deputies.

Later, the document was passed in a plenary meeting of the Chamber of Deputies, and is now pending promulgation by the president.

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