Banks have significantly tightened mortgage lending standards for population in the second semester of 2016 after the debt discharge law entered into force, a survey conducted by the National Bank of Romania (BNR) shows. For the upcoming three months, the survey suggests that the trend will continue.
The survey studied the lending for non-financial companies and population and was conducted by the BNR.
“Mortgage lending standards continued to tighten significantly in Q2/2016 due to the adoption of Law no. 77/2016 on debt discharge,” the survey showed. “For the next three months, credit institutions forecast a continuation of the trend of tightening of lending standards for homes and lands purchasing, but with lower intensity,” the survey report reads.
At the same time, demand for mortgages has diminished in the second semester of 2016, and for the upcoming three months the crediting institutions are forecasting a drop in demand on this segment. As far as lending standards are concerned, the survey shows that banks have tightened conditions on the down payment, namely they increased it and tightened the maximum lending period.