Two years since the introduction of debt discharge law: fewer than 8,500 notifications submitted

Anca Alexe 17/04/2018 | 13:44

Two years have passed since law 77/2016, known as the debt discharge law, was passed, and the total number of notifications over these two years was 8,459, according to Hotnews.

The debt discharge law says that any individual who has a mortgaged-backed loan worth up EUR 250,000 can transfer their house to the bank, and the lender will wipe out the debt.

The law’s proponent, former Liberal Party member Daniel Zamfir, said at the time: “Today, in Romania, there are 800,000 families who are no longer able to make their bank payments. This law prevents these families from becoming social cases.”

Despite the proponents’ claim that there would be 800,000 people who would benefit from the law, according to the National Bank of Romania, in 2016 there were 6,363 notifications submitted, in 2017 there were 1,894 and in the first three months of 2018, only 202 notifications.

Of the 8,500 total submitted notifications, 71 percent were challenged (6,023). Four banks are involved in about 60 percent of the notifications. 916 debtors submitted a notification for at least two loans.

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