IMF Bullies Romania Into Submission on Loan Bill

Romania’s new Loan Bill will most likely be modified in favour of the banks, after a week of pressure from the IMF representatives who were in Bucharest, the country’s capital. Jeffrey Franks, the IMF representative for Romania, threatened to cease the current loan agreement with Romania, unless the bill is changed.

The law, passed by the Government and the Parliament, forbids banks to charge abusive fees from their clients. The risk charges and administration fees on the Romanian banks’ loans sometimes go beyond three times the installments for the principal debt.

Politicians and analysts have so far made evasive statements about the new turn of events. The Loan Bill will most likely be changed so as not to affect on-going loan contracts.

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