Economy Ministry proposes broader rights for loanees

When concluding loan agreements, commercial banks and non-bank institutions will be required to thoroughly and exactly inform borrowers on the interest rate on the loan, how it is calculated, and on any other included costs or commissions, under a draft law proposed by the Ministry of Economy, Info-Prim Neo reports. The draft law was developed together with the Ministry of Finance, the National Bank, the Moldovan Banks Association, and the Financial Market Commission. Deputy Economy Minister Octavian Calmic said the document restricts the imposition of commissions by financial institutions. It forbids any commissions, fees or charges during the loan agreement other than those expressly allowed for by the legislation. For example, it will forbid commissions on cash installments on loans, on changing the payment date or on changing the guarantees. “This draft law significantly broadens the right of borrowers by introducing the withdrawal right. Borrowers will have 14 calendar days from the date of signing the agreement during which they will have the right to withdraw without giving explanations”, said Calmic. The bill will be subjected to public debates before being submitted to Parliament for consideration.