Law on banking activity to be amended

Chisinau, March 17 / MOLDPRES /- The initiative to amend the Law on banking activity and the Law on Non-Bank Lending Organizations, which aims to increase consumer protection for loans was supported in the first reading by 82 MPs.

The author of the project is the chairman of the Committee on Economy, Budget and Finance, Dumitru Alaiba. He claims that about 450,000 people have loans from non-bank lending organizations of which almost 200,000 are in arrears, including 40,000 in arrears for more than a year.

"When a person has an extraordinary need, he can easily fall prey to fraud, and a debt of 10 thousand lei can turn into one of 100 thousand and this is because sometimes interest rates reach 1700 percent annually," said the deputy.

The project approved today aims to cap the credit interest rate specified in the credit agreement at a maximum of 50%. At the same time, other expenses (commissions, fees, penalties, interest on arrears and any other type of payment) that are included in the total cost of the loan, excluding interest, per credit day, will not exceed 0.04 percent. of the total loan amount. Therefore, the total cost of the loan will not exceed its total value.

Photo: Parliament