Playing the Cat and Mouse Game: Emergency Ordinance 50 and the European Directive

Policy brief, no.4, November 2010

Author: Claudia Silaghi

CRPE has made a comparative analysis between the provisions of the Directive 2008/48/EC on credit agreements for consumers and its transposition at national level: i.e. OUG 50/2010. The draft law, which is still being examined in Parliament, has led to numerous debates among bank representatives, members of Parliament and consumers.

CRPE welcomes the fact that the Romanian authorities did not transpose ad literam the European directive. Instead, they adapted it to the needs of the national banking market. The CRPE report highlights as well a series of inconsistencies related to the Emergency Ordinance 50. As such, our study analyses four main issues:
•    The question of mortgage credits;
•    The question of banning several types of credit costs in a credit agreement;
•    The question of  the basic calculation of the annual percentage rate for a variable interest rate;
•    The question of retroactivity;

This report is part of the project “Romania as an active actor in EU debates I” and is financed by the Soros Foundation Romania under the Foreign Affairs Initiative programme.

The report is available only in Romanian, here.