Lenders will request additional guarantees if personal bankruptcy law is adopted

The adoption of personal bankruptcy law could force lenders to be in for additional guarantees for financing and will restrict the access to credits, believes Adrian Vasilescu, the advisor of National Bank of Romania’s (BNR) governor. He emphasized that the Central Bank communicated to the Parliament a unflattering point of view concerning this project. “The project of personal bankruptcy is generous in appearance. But in its essence, it is possible for us to have some legal provision that may create a significant pressure on the banking system. Such a law could discourage the lending process and it is possible to see lenders seeking additional guarantees in order to offer a credit”, says Vasilescu. “Those who could be glad in a first faze that have some benefits, they would later realize that will be more difficult for them to sign a credit contract, “says Vasilescu. Senators adopted recently a legal proposition concerning individuals’ insolvency, initiated by Liberal Democrat Party (PDL).

Anda Dragan