Romania’s President Klaus Iohannis signed on June 18 the personal insolvency law.

The new law allows any Romanian who can’t pay his debts, but not out of his fault, to reschedule his debts over a period of five years.

The Chamber of Deputies approved the law unanimously on May 20. Social-democrat MP Ana Birchall together with a group of other 153 MPs initiated the law.

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

Romania adopts personal insolvency law.

editor@romania-insider.com