Revolution on the banking market: individual clients who tookout consumer or mortgage loans in recent years and are forced bybankers to continue to pay visibly higher interests than thosecharged for new loans available now will be able to refinance theirdebt from competitor banks in exchange for an early repayment feeof no more than 1% of the amount left to repay.
Moreover, an early repayment fee will not be charged forvariable interest loans, an emergency ordinance passed by theGovernment yesterday stipulates.
Whereas until now customers had been held 'captive' by loancontracts whereby banks set early repayment fees at theirdiscretion, of 4-5%, the loan market will be able to becomecompetitive in the true meaning of the word, and debtors will havemore freedom to choose the best terms on the market.
Banks have three months since the publication of the emergencyordinance in the Official Gazette to amend the existing loancontracts via addendums.
The emergency ordinance implements the stipulations of aEuropean directive on the elimination of barriers on the EU loanmarket, but also spectacularly extends them through the 1% cap onthe early repayment fee for new and old loans alike, regardless oftheir type, i.e. consumer and mortgage credits.
Bankers had not expected the ordinance to be like this, as it islikely to cause them to lose significant revenues from fees andincur costs for reallocating funds repaid early.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
