SIMILAR ARTICLES

Development strategy / Government squeezes even investment money from its own companies: EUR 120 million from only two entities in energy field

Nuclearelectrica (SNN) and Romgaz (SNG) have calculated the additional dividends to be paid to the state after the Ministry of Finance (MFP) sent to the… Mai mult

Illegal state aid / European Commission demands Romania to recover EUR 60 million from CE Hunedoara

Romania has to recover illegal state aid worth EUR 60 million granted to Compexul Energetic Hunedoara, announced the European Commission with a statement released on… Mai mult

DNA, officially: Senate President is suspected of having received a USD 800,000 bribe. Case file opened at a request from Austrian judicial authorities

The case file in which the DNA requested the waiving of the Senate President’s immunity was opened at the request of Austrian judicial authorities and… Mai mult

Bucharest Stock Exchange: European record increase of reference index, old liquidity issues

The main index of the Bucharest Stock Exchange (BVB), BET, registered the second highest increase in the European Union (8.5%) in the first nine months… Mai mult

Romanians from abroad sent as much money to Romania as Government attracted from European funds and subsidies

Romanians working abroad sent EUR 2.695 billion to the country in the first eight months of 2018, equalling the European funds and subsidies received in… Mai mult

Cronicile

National Bank of Romania wants to lower indebtedness limit in granting loans to individuals

de Adrian N Ionescu , 18.6.2018

The National Bank of Romania (BNR) sent to banks for consultation a draft amending Regulation 17/2012, which provides for a consistent lowering of the indebtedness limit.

The draft on changing the indebtedness limit would undergo, though, substantial changes compared to the disseminated version, according to sources from the BNR.

The document, which was discussed informally by the BNR, stipulates among other things that the maximum level of the total indebtedness for persons who receive both loans in lei and loans granted/indexed in a foreign currency may not exceed 40%, in compliance with the maximum levels depending on credit types.

If a borrower has previously contracted credits, when receiving a new loan, the maximum level of total indebtedness and maximum levels by type of credit, may not exceed the values in the following table.

*

  • Maximum indebtedness levels
  • Maximum level for loans granted/indexed in a foreign currency
  • RON    Foreign currency
  • Maximum indebtedness level
  • Loan for real estate investment          Fixed interest
  • Variable interest
  • Consumer loan                                   Total consumption
  • Fixed interest
  • Variable interest

*

For the first loan for real estate investment contracted to purchase a house which is/is to be inhabited by the borrower, the total indebtedness and each of the levels for the real estate investment is five percentage points higher than the values shown in the table.

To calculate the level of indebtedness for a debtor with loans received/indexed in one currency, the following will apply:

  • the maximum level of total indebtedness and the maximum levels by type of credit, related to loans in RON, in case of persons fully covered for the foreign exchange risk;
  • the maximum level of total indebtedness and the maximum levels by type of credit related to loans in a foreign currency, in case of persons not fully covered for the foreign exchange risk.

“This regulation establishes, for the purpose of maintaining the financial stability, certain conditions for granting and carrying out loans on the Romanian territory aimed at individuals and non-financial entities”, says the draft regulation.

Banks will need to inform loan applicants who are not naturally covered for the foreign exchange risk about the impact of a possible severe depreciation of the domestic currency on the instalment so that it is possible to compare the monthly instalment by taking into account a 35.5% foreign exchange shock for the euro, 52.6% for CHF and 40.9% for the USD.

“For the other currencies, the corresponding CHF value is used. If the applicant’s income and the requested loan are expressed in two different foreign currencies, the maximum of the two currencies’ shocks against the national currency is used for the exchange rate shock,” says the draft.

BNR officials have been considering the possibility of limiting the indebtedness since September 2017, after statistics showed that loans to individuals exceeded the signal threshold and approached the alert threshold.

Upon reaching the alert threshold, the European Systemic Risk Board obliges the BNR to take action through the Macro-prudential Systemic Risk Committee and central bankers most often opt to cap the indebtedness.

Mergeți în homepage ›

Publicat la data de 18.6.2018

Lăsați un comentariu


NEWS

Development strategy / Government squeezes even investment money from its own companies: EUR 120 million from only two entities in energy field

Nuclearelectrica (SNN) and Romgaz (SNG) have calculated the additional dividends to be paid to the state after the Ministry of Finance (MFP) sent to the… Mai mult

DNA, officially: Senate President is suspected of having received a USD 800,000 bribe. Case file opened at a request from Austrian judicial authorities

The case file in which the DNA requested the waiving of the Senate President’s immunity was opened at the request of Austrian judicial authorities and… Mai mult

Illegal state aid / European Commission demands Romania to recover EUR 60 million from CE Hunedoara

Romania has to recover illegal state aid worth EUR 60 million granted to Compexul Energetic Hunedoara, announced the European Commission with a statement released on… Mai mult

Ministry of Finance planned loans of RON 4.74 billion in November. Costs are increasing

The Ministry of Public Finance (MFP) intends to borrow in November RON 4.74 billion, 1.4% more than in the previous month, according to the Ministry.… Mai mult

New 100% Romanian tractor has been launched. Features, endowments, price

IRUM Reghin launched the first 100% Romanian tractor, announced Digi24, designed and built by the company’s engineers, 15 years after the Romanian tractor manufacturing disappeared.… Mai mult

Romanians from abroad sent as much money to Romania as Government attracted from European funds and subsidies

Romanians working abroad sent EUR 2.695 billion to the country in the first eight months of 2018, equalling the European funds and subsidies received in… Mai mult

Bucharest Stock Exchange: European record increase of reference index, old liquidity issues

The main index of the Bucharest Stock Exchange (BVB), BET, registered the second highest increase in the European Union (8.5%) in the first nine months… Mai mult

Estimates of Capital Economics: GDP is losing speed in Q3 as well, growth could be reduced to 3.5%

The first estimate of the economic growth in Romania in the third quarter shows a reduction down to 3.5% (year-on-year), after the previous quarter's Gross… Mai mult

Mugur Isarescu - BNR: Wages should increase by market forces not by politicians

Wage increases should be based solely on productivity growth and be made "by market force", not by politicians, the Governor of the National Bank of… Mai mult

OMV postpones decision to assume an investment in natural gas from Black Sea for next year

Austrian OMV Group postponed its decision on the Black Sea investment for next year, in the context of the offshore law adoption being postponed, Reuters… Mai mult

Justice Minister initiated procedure for dismissing General Prosecutor

Minister of Justice announced on Wednesday that asks for the dismissal of General Prosecutor Augustin Lazar (photo) for 20 reasons (they could be more, Tudorel… Mai mult

Eurobarometer / Romanians who believe that EU membership is a good thing have lost majority position

  The last Eurobarometer of the European Parliament, published in September, shows that 49% of Romanians consider that EU membership is a good thing. Compared… Mai mult

PSD announces consensus with ALDE on offshore law: 50% of production is sold on Romanian commodity exchange, maximum 30% deductions for operators

PSD and ALDE reached consensus on amendments to the offshore law, the leader of PSD deputies Daniel Suciu announced on Wednesday evening and said that… Mai mult

Siegfried Muresan asks for EUR 2 billion from EU post 2020 budget to defend rule of law

MEP Siegfried Muresan (PPE / PNL) has submitted this week an amendment to the European Parliament's interim report on the EU post-2020 multiannual budget and… Mai mult