Bankers request up to 150-day extension to commence foreclosure action

ARB has submitted several proposition to the central bank, some with respect to extending the time frame before initiating foreclosure or the endorsement of the central bank into resetting the default date for loans.

Moreover, the banks requested to take into account “at least a part of the collaterals in calculating the provisions, when the delinquency rate reaches up to 90-days late.

“We must be very cautious with the low provisions and it takes a lot of focus. We talked on this issue, and we will take a more deep analysis in the coming period”, said Ghetea.

The banks requested BNR to allow the removal of credit lines granted by institutions such as EIB, EBRD or IMF in the calculation of required reserve ratios.

“We plan on reestablishing the old regulation for the banks to often use the available financing lines”, said Ghetea.

Bankers expect the central bank to modify the evaluation procedures at yearend of swap operations and state securities without losing their values throughout the time. “We are in talks with BNR and we expect the final decision of Basel committee, who is working to reset the methodology”, said the chairman of ARB.