The Cabinet on March 2 endorsed a bill that regulates the principles of assessing the creditworthiness of loan beneficiaries and caps the interest rate stipulate in the loan agreement. The bill was submitted by a group of MPs as a legislative proposal, IPN reports.

The other related costs that are included in the total cost of the loan, such as commissions, taxes, penalties, delay interest and any other type of payments, will not exceed 0.04% of the loan a day.

According to Minister of Finance Dumitru Budianschi, the goal of the project is to increase protection for persons who take out loans so as to contribute to increasing the banking sector’s security and consumers’ confidence in the financial sector.