Controversial Law on Giving in Payment passed by the Senate after the President’s request for review

The long-awaited draft law on giving in payment (datio in solutum) immovable goods to extinguish mortgage loans has been passed by the Romanian Senate with 119 votes in favour, and sent to the Chamber of Deputies for a final vote.

However, the bill has passed with questionable amendments after the Romanian President called for the review of the bill towards the end of 2015. In its current form, the law will only be applicable to consumers, and the value of the mortgage loans that can be extinguished by datio in solutum has been capped at EUR 150,000.

The capped value spurred further controversy between the supporters of the draft law and the representatives of the banks, though the Chamber of Deputies will have the decisive vote on the matter.

Stratulat Albulescu - Attorneys at law