The new law on mortgage loans could lead to more restrictive conditions for granting mortgage loans, which could impact upon the living conditions of many Romanians, according to the non-profit Salvati Copiii (Save the Children).

According to statistical data, 69.1% of the Romanians aged 15-29 live in overcrowded homes, compared to the EU average of 26.6%, whereas 36.4% of Romanians live in homes without bath or shower, reads the NGO press release. This situation will only worsen if Romania adopts the new law which allows mortgage debtors to get rid of their debts by giving the mortgaged assets to the banks.

The banks have already reacted by saying they would toughen the lending conditions. This would determine more young Romanians postpone the decision to have children, according to the NGO.

The law is still debated in the Parliament.

editor@romania-insider.com