IMF backs enforcement of Ordinance No. 50 for effective contracts only

Franks pointed out that, according to the IMF, Ordinance No. 50 - which regulates consumer credit contracts - should not apply to contracts already in force. Franks will discuss the consumer protection issues with the parliamentary and government authorities.

Emergency Ordinance No. 50/2010 which regulates the credit contracts for consumers requires credit institutions to reference interest rates exclusively to the fluctuations of the public reference indices, respectively the ROBOR, EURIBOR, LIBOR or the BNR key interest rate, with the sole purpose of ensuring the transparency of the interest rate change process, but the cut in interest rates for ongoing credit contracts is not set forth in the document.