Romanian state-owned lender CEC will increase the down payment for mortgage loans from 15% to 30%. The measure applies to new mortgage loans in lei and foreign currency used to buy or build houses that are below EUR 250,000.

The bank will grant loans in foreign currency only to customers who get their earnings in the loan’s currency.

The bank announced its decisions after the new law on giving in payment was published last week. Two days ago, BRD and Alpha Bank also announced that they would increase the down payment for their mortgage loans.

Raiffeisen, Bancpost, and Garanti also decided to increase the down payment for mortgage loans earlier this year, when the law was just in debate.

The giving in payment law, which was strongly opposed by Romania’s National Bank and local commercial banks, was voted by the Parliament in April and signed by President Klaus Iohannis at the end of the month. The law was published in the Official Gazette on Thursday, April 28, and will enter into force in mid-May.

It introduces giving in payment as a way to discharge mortgage debts, allowing debtors to hand over their mortgaged properties to the banks and walk away debt free.

editor@romania-insider.com