Romania has an efficient mortgage system in terms of the ease of procedures, costs, security and adequacy to market requirements, according to a report on “Mortgages in transition economies” released by the European Bank for Reconstruction and Development (EBRD).
The report looks at the legislative framework and the mortgage market in 17 Central and Eastern European countries, Romania included. Deloitte Romania and Reff si Asociatii SCA, the law firm affiliated with Deloitte Romania, contributed in drawing up the report for Romania. “We are yet to see whether the mortgage market growth in Romania will maintain the alert rate it has had so far.
Romania has had for approx. two years a legislative and regulatory framework regarding mortgage claims and securities. For a market with such an alert growth rate as the one witnessed by Romania over the past few years, the benefits of using capital market tools may be substantial, and facilitate better management of refinancing costs, of capital adequacy requirements for crediting institutions, and a prospective positive impact on crediting costs to the benefit of borrowers,” says Reff & Asociatii Senior Manager Andrei Burz Pinzaru.