Almost 8 million loan contracts will have to be amended by banks over the next three months to cap the early repayment fee to 1% of the amount to be repaid, and drop it completely in case of variable interest loans, regardless of their type, consumer or mortgage, the emergency ordinance enacted by the Government yesterday stipulates.
Constantin Cerbulescu, chairman of the National Consumer Protection Authority, says the new rules are valid for all main loan types - mortgage, consumer and leasing loans, both for new and ongoing contracts.
"This is a step favouring those with ongoing loans. They will be able to refinance their loans to pay their instalments to banks on better terms," Premier Emil Boc said.
Radu Ghetea, chairman of the Romanian Banking Association (ARB) says interests are not that different among banks so that he does not expect significant client 'migration' from one bank to another.
He also disagrees with the extension of the early repayment cap to ongoing loans, and especially to mortgage credits.
"Delicate situations will come up because there are clients to who got lower interests in exchange for a pledge of loyalty to the lending bank, based on negotiation. The negative impact on the costs of banks is certain and will directly influence cost of new loans," Ghetea says.
Almost 8 million loan contracts will have to be amended by banks over the next three months to cap the early repayment fee to 1% of the amount to be repaid, and drop it completely in case of variable interest loans, regardless of their type, consumer or mortgage, the emergency ordinance enacted by the Government yesterday stipulates.
Constantin Cerbulescu, chairman of the National Consumer Protection Authority, says the new rules are valid for all main loan types - mortgage, consumer and leasing loans, both for new and ongoing contracts.
