New rules on lending
BUCHAREST (Reuters) – Romania will enforce tighter lending rules for individuals in a bid to diminish borrowing risks and help temper fast credit expansion, the central bank said yesterday. The new rules, which take effect tomorrow, will extend the application of solvency ceilings enforced last year for individual borrowers to non-banking institutions, including ones running financial leasing activities. The bank has been trying to discourage people from taking loans for months to curb inflationary pressures stemming from booming household demand, a key driver of economic growth in Romania, which is to join the EU next year. «The norms are mainly aimed at tempering a steep rise of the credit,» Adrian Vasilescu, adviser to central bank governor Mugur Isarescu, told Reuters. «The rules create a united legal framework for borrowers.»
