Banks to Foreclose 300 Thousand in Romania

About 300 thousand Romanians can’t keep up with their loan payments – and things are expected to take another dive for the worst, since the government docked the pay of dozens of thousands of public workers with 25 to 40 percent.

Almost a billion dollars is the total amount of debt from the Romanians who can’t afford to pay any more. Two years ago, instead, everyone could get a loan, regardless of income and estimated means to pay.

Banks had just introduced the 30 years mortgage and were preparing to announce the “loan for life” programme.

Now, people who put down as collateral a piece of property are facing foreclosures. An apartment that would have sold for 200 thousand dollars only two years ago is hardly worth 60 now – which is, for some, the actual value of the property. Banks seize houses and try to auction them, but not even at these low prices will anyone dare to purchase.

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