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Romanian president sends mortgage law back to Parliament

Romanian president sends mortgage relief law back to Parliament, asks for a redo

Romanian president sends mortgage law back to Parliament

BUCHAREST, Romania (AP) -- Romania's president has sent a law which restricts what banks can reclaim from people who default on their mortgage payments back to Parliament, asking lawmakers to write the legislation more clearly.

Lawmakers passed a law on Nov. 25 allowing banks to seize the property the loan was taken for, but not to seize other assets or claim further payment.

Supporters say the bill could help hundreds of thousands of people struggling on repayments of housing they bought during an economic boom.

The central bank says the bill could cause financial instability. It says just 70,000 people are behind on their payments.

President Klaus Iohannis said the bill was "welcome" Friday, but needed to be written more explicitly.

The president can only send a law back to Parliament once.

Updated : 2021-09-24 13:39 GMT+08:00