According to a PwC study presented on Monday by the Romanian Banks Association, the method proposed by the ANPC is against the interests of the consumer and has serious flaws that negate its practical viability.

Therefore, the application is not feasible as it leads to an infinite repayment period, requiring 72 years to pay off 99.9% of the balance on the mortgage loan and 45 years for the consumer loan. The special case of introducing an arbitrary time threshold (for example, forced cancellation of the loan after 30 years) in practice means a significant high payment for the consumer, which can reach 5-10% of the loan value, but do not comply with the standards regarding the degree of indebtedness.

• We remind you that ANPC fined a number of banks for “deceptive commercial practice” regarding the method of calculating rates due to the fact that the rate on the repayment schedule was 25% of the principal balance in the first years. to maturity and 75% interest rate. Thanks to this method of calculation, consumers actually paid mostly interest. ANPC lost lawsuits filed by fined banks on the issue.

The practice at the level of the European Union regarding the method of calculating installments shows that all 15 audited countries use the two loan repayment methods regulated in Romania, namely equal payments (annuities) and decreasing payments, according to the study “Method of calculating installments in the countries of the European Union” , conducted by PwC.

The research on legislation and rate calculation practices covered Austria, Belgium, the Czech Republic, Estonia, France, Germany, Greece, Italy, Lithuania, the Netherlands, Poland, Portugal, Slovakia, Spain and Hungary, covering 85.4% of banking assets in the European Union. In eight countries, Austria, France, Greece, Poland, Portugal, Slovakia, Spain and Hungary, flat rates (annuities) are predominantly practiced on a large scale.

In none of the 15 countries tested does the repayment method proposed by the National Authority for the Protection of Consumer Rights (ANPC), in which the principal amount equals the interest, be practiced. Loan repayment methods are not regulated by law in any of the 15 states, unlike Romania, which legislated for flat rates (annuities) and discount rates for consumer lending. Local practice is consistent with local special literature, which, in turn, corresponds to European literature.

For the consumer, the forced equality of the principal amount with interest means accelerated repayment of the principal amount in the first periods, i.e. significantly higher financial costs

Thus, the availability of credit falls significantly under the method proposed by ANPC, the principal is equal to the interest, against the background of an increase in the first installment. Under current market conditions, a family would need 70% to 90% more salary income to get the same loan if it was repaid using the equal interest method than using the equal payment method.

The repayment method proposed by ANPC greatly reduces the ability of consumers to purchase housing. Relative to the national average household salary, the equal rate method can finance 110% of the national average price of a two-bedroom apartment, while the basic method equates to just 59% interest.

The banking sector constantly supported the needs of the population and access to financing by providing new loans. The correlation between the level of real estate loans granted to the population and the number of available houses is +0.99, indicating a strong relationship between the expansion of mortgage/real estate loans and the increase in the number of houses. The correlation between the level of new consumer loans granted to households and the level of monthly consumer spending is +0.65, which indicates that through loans, banks directly stimulate the level of consumption in the economy and indirectly economic growth.