Individual bankruptcy might become a reality in Romania if the Chamber of Deputies approves the project which has already passed the Senate vote. Being able to declare personal bankruptcy will allow individuals to renegotiate the terms of paying back a loan, among which the payment schedule and the amount to be repaid. The possibility to decrease the final amount to be repaid has also been included in the project. Bankers however are opposing the project, which could trigger losses for lenders and which could increase the cost of lending even more.

UPDATE: The personal bankruptcy law could have negative effects for the Romanian banking system, according to rating agency Moody's. The agency estimates lenders could require a 10 percent extra capital. The amount could be even higher if individuals who are not in financially tight situations will try to take advantage of the new law. IN Romania, consumer loans make around 36 percent of total loans, according to Moody's data.