The National Bank of Romania limits the maximum level of total indebtedness

Regulation no. 6/2018 for amending and supplementing the Regulation of the National Bank of Romania no. 17/2012 on certain credit conditions

At the beginning of the year, the Regulation of the National Bank of Romania no. 17/2012 on certain credit conditions has been changed.

If until now the creditors could use in the activity of lending to individuals the levels of total indebtedness established within their own regulations, from January 1st, according to the amendments made to this act by Regulation no. 6/2018 issued by the National Bank of Romania at the end of 2018, they are obliged, when granting a credit, to set a maximum level of the total indebtedness of the debtor – individuals – that does not exceed 40%.

The total indebtedness is an indicator that reflects the total debt of a person and is determined as the percentage of the total monthly payment obligations resulting from credits or other repayable financing from the net monthly income taken into account, i.e. the revenue from which the tax liabilities were deducted.

NBR also establishes an exception to this rule imposed on banks and IFNs, for the persons who do not own and have not owned any residential property, when granting the first credit for real estate investments contracted for the purpose of purchasing a house that will be inhabited by the debtor. In this case, the maximum level of total indebtedness will not exceed 45% of the monthly net income of the individual requesting a credit.

The legislative provisions mentioned above are in force on 01.01.2019. To update the information please contact us.