Romania’s largest lender Banca Comerciala Romana (BCR) has joined the other local banks that have increased the down payment for mortgage loans after the giving in payment law was recently passed.

BCR has increased the down payment to 35% for mortgage loans and has raised the minimum amount that can be borrowed to RON 45,000 (EUR 10,000).

At the end of last week, BRD, Alfa Bank, and state-owned CEC Bank also announced that they decided to increase the down payment for mortgage loans. Raiffeisen Bank raised the down payment before the law was even passed. Subsequently, Bancpost, Garanti Bank and Intesa Sanpaolo Bank came up with new rules for mortgage laws.

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 April.

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.

editor@romania-insider.com