Government adopts new anti-usury initiative
22:41
The Council of Ministers has adopted a bill amending certain laws to counter usury (the practice of making unethical or immoral loans), informed the Government Information Center (CIR). Under the new regulations, lenders will not be able to freely determine additional payments for purchases in installments, and it will also be prohibited to add unlimited commission, margins, fees for submitting or processing applications, or compulsory insurance.
The maximum limit for additional payments for installment purchases will be set at 45 percent of the loan amount per year. If the installments are spread over six months, the additional costs will not exceed 32.5 percent, while the interest limit will remain at the current level, i.e. 10 percent a year.
Under the new regulations, restrictive rules will apply to short-term loans for small amounts,
The new law also introduces strict limits in terms of collateral; it will not be possible to reclaim apartments and houses as a result of failing to repay small loans.
(ISBnews)
