Local banks could receive state guarantees if they convert the mortgage loans granted in foreign currencies into lei with a 15% discount, according to a draft project that the Finance Ministry sent to the Parliament on October 6.

The system is similar to the First House program, where the state offers guarantees for mortgage loans, but it now addresses credits that have already been granted, reports local Profit.ro. The guarantee ceiling for the conversion operations amounts to EUR 226 million, but it could be extended, as announced in July by the Finance Minister Eugen Teodorovici.

The talks around the conversion of loans in foreign currency started after the Swiss franc appreciated very strongly against other currencies in January, and people with loans in Swiss franc found it difficult to pay their installments.

editor@romania-insider.com