Romanian Bks Want Softer Lending Rules To Unblock Mortgage Loans

"These amendments prove to be very detrimental for mortgage lending. After the new rules are applied, there are few clients that can qualify to take a loan," Ghetea said.

However, Ghetea admitted the new rules have had a positive effect on the overall debt degree, but said the regulation should be amended according to the new market conditions.

According to the new regulation, the banks will calculate a debt degree for household lending based on revenues that do not exceed by more than 20% the ones declared to the Fiscal Authority in the previous year.

Also, the maximum monthly installment an individual can afford to pay back on a loan will not be changed until the loan matures, according to regulation.

For banks that don’t have their own lending norms, the debt degree will be lowered to 35% from 40% of the client’s income.