The Romanian Banking Association estimates that the impact of applying the personal insolvency law would amount to some EUR 792 million for banks.

Good customers could decide to stop payments and wait for insolvency benefits, whereas banks would have big logistic costs in implementing this law, said vice-president Florin Danescu, cited by local Agerpres.

The European countries which enforced this law use legal filters to limit potential excesses in using the law, he also said. In some countries, a person who has become insolvent can’t take another credit for 5 or even ten years.

editor@romania-insider.com