Parliamentary debates over the emergency ordinance on consumer credits remain in limbo

Parliamentary debates over the OUG 50/2010, the emergency ordinance on consumer loans, reached no conclusion and the meeting of the parliamentary commission on budget, finance and banks was postponed once again this Wednesday. MPs from the Democratic Liberal Party (PDL) argued that in order to obtain the next the next loan tranche from the IMF the bill should apply only to new credit contracts exempting those currently in progress. The central bank supports this position but representatives of opposition parties vehemently opposed the proposal.

Considered an obstacle to obtaining the next loan tranche, OUG 50/2010 was a one of the main issues discussed during the last IMF visit to Bucharest this September. Adopted by the government in June, the ordinance transposes the EU 2008/EC/48 directive regarding consumer loans into local legislation. The ordinance is meant to improve transparency and to protect consumers from abusive banking practices, applying both to new contracts and those already in progress.

Since June local banks as well as representatives of the European Commission and the IMF have repeatedly called upon the government to change the ordinance, arguing that it should not apply retroactively.

In a letter recently sent to the Chamber of Deputies, President Traian Basescu urged MPs to pass the bills on public wages, pensions, social securities, the 2011 state budget as well as the OUG 50/2010 so that the agreement with the IMF, the European Commission and the World Bank should not be endangered.

Simona Bazavan

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