Romania’s National Bank (BNR) ponders capping the level of indebtedness for individual clients who take loans from local banks or non-banking financial institutions (IFN) to 50% of their revenues, local Profit.ro reported.

This would mean that the total monthly instalments on loans can’t represent more than 50% of the clients’ revenues.

Finance minister Eugen Teodorovici confirmed the central bank’s intention after a meeting of the National Committee for Macroprudential Supervision, which includes central bank, Finance Ministry and Financial Supervisory Authority officials.

“This is one of the subjects on the agenda, no decision has been made,” Teodorovici said.

He added that the Finance Ministry and the Government would issue an opinion on this. Teodorovici also said that, on a personal level, he opposed such an initiative.

editor@romania-insider.com