Romania’s Government has decided to challenge the law adopted by the Parliament on the conversion of Swiss francs into local currency loans at the Constitutional Court, Government spokesperson Liviu Iolu announced yesterday evening, reports local Agerpres.

The law, which was recently passed by the Chamber of Deputies, rules that all loans in Swiss francs will be converted into local currency loans at the historic exchange rate from the moment they were granted.

According to official sources, the Government supports social elements and cases, but the current form of the law adopted by the Parliament exceeds the support that the Government can take responsibility for.

The Romanian deputies unanimously voted the law last week, two months before the elections. Some 50,000 Romanians with loans in Swiss francs would benefit from it.

However, the law will cause some big problems for local banks, which may take several hundreds of millions of euros in losses.

editor@romania-insider.com