Romania’s Govt Pleads For Eliminating Early Loan Repayment Fees – PM

This draft is based on a European initiative that is adapted to the local economy, and it will stimulate competition within the banking sector and will have positive effects on all Romanians who took bank loans, Boc said.

Thus, the people who borrowed from a bank could benefit from lower interest rates and will no longer be „captive” in an unfavorable 20-year loan, he said.

Earlier this year, the Competition Council said it will discuss with ANPC about extending the applicability area of the European Commission’s directive on the early reimbursement of bank loans, with eliminating or limiting the commissions for all types of loans with variable interest rates.

Bolojan: Întărirea flancului estic NATO, de la Marea Baltică la Marea Neagră, o prioritate

23:08

Ilie Bolojan anunță că România nu va dubla cheltuielile de apărare

23:06

„The European directive refers to consumer loans without mortgage of up to EUR75,000,” said at that time Bogdan Chiritoiu, head of the competition watchdog.

However, Radu Ghetea, the president of the Romanian Banking Association ARB, said then the elimination or lowering of these fees is not a good idea for the moment, adding the priority should be to implement the European directive.

Currently, each local lender is allowed to set its own fee for different loan categories.

Thus, as of June 2010, bankers will limit to 1% the early repayment fee for unguaranteed consumer loans of between EUR200 and EUR75,000, according to a EU directive.