The personal insolvency law could have a budget impact of EUR 271 million in five years. This has been calculated based on the total number of potential insolvencies, which amounts to 800,000, and the monthly tariff of RON 100 - 300 (EUR 22.6 - 68) per file, which would be covered by the state, said Alexandru Stanescu, consultant within the World Bank.

However, this was not a bank’s analysis, but a personal one, an estimation, Stanescu added. The Government should have mentioned the budgetary impact of this law, and the tariffs that administrators will charge.

“I think the impact is worth the attention of the Finance Ministry,” he said, cited by local Agerpres.

The law isn’t clear enough about certain concepts in the law, such as what defines a “decent life”. It does provide certain guidelines, such as family structure, costs on bringing up children, the family’s home, but it’s not clear how they will be calculated, or if they are the only guidelines that can be considered, Stanescu said. The system should have clear and concise rules, because otherwise it won’t be used, he concluded.

editor@romania-insider.com