Romania Parliament Approves Law to Convert Swiss-Franc Loans
- Legislation allows conversion into lei at historical rates
- Banks may incur losses of $586 million, central bank says
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Romanian lawmakers approved a bill allowing the conversion of Swiss-franc loans into the local currency at below-market rates, a move that could cost banks almost $600 million and which the central bank said risked undermining economic gains.
With less than two months to December general elections, lawmakers voted unanimously in favor of the law, which lets borrowers switch loans into lei using the exchange rates under which they were issued, Speaker Florin Iordache said Tuesday in Bucharest. President Klaus Iohannis, who must sign the legislation for it to come into force, said he’ll ask for input from “all parties involved, including banks,” before making a decision.