Togher Rules For Bank Loans

The National Bank Governor Mugur Isarescu cut short his vacation to sign a new central bank regulation which will make it more difficult to borrow money after October 6.

The National Bank Governor Mugur Isarescu cut short his vacation to sign a new central bank regulation which will make it more difficult to borrow money after October 6.
All comes down to the new method of calculus used to assess the clients' creditworthiness.

Proof of income can be made only with fiscal reports in the year before, plus 20%, hich the bank believes to be a reasonable hike in personal income for the individuals.
However, if a person's income hiked more dramatic than that, due to a change of work place or promotion, than he or she must prove the change is not temporary.
The cap on borrowing will be assessed on a case by case value, factoring in other data too, as the type of credit sconsumer credit or mortgageţ; the currency; the type of interest sfixed rate or fluctuating rateţ; the type and value of collaterals.
And the assessment of the client's creditworthiness will go back 18 months in their financial detail.

Commercial banks are due to forward the National Bank within a month their own crediting criteria, in line with the central banks' recommendations; while other money lending institutions, which are not part of the banking system, have to do the same within 45 days, that is October 6.

The further shrinking of the real-estate market is the most likely outcome of this new regulations, realtors say. Already on a downward slope, the prices are expected to fall even further on this market. Both home seekers and real-estate developers will stand to loose.