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Brussels to involve in regulating Romania real estate credits

After witnessing the ongoing real estate credit crisis in the United States, the European Union may introduce a series of obligatory rules for the way real estate credits are accepted, in order to make sure that such loans are offered in a transparent way, Reuters informs, quoting a document issued by the European Commission.

Charlie McCreevy, Interior Market Commissioner, may introduce the draft next month. Hotnews.ro received the feedback of Romanian analysts. The measure will produce effects on a market worth €5,800 billion ($8,600 billion) worth of loans, representing half of the GNP of all 27 EU countries, Reuters reminds.

According to the agency, McCreevy suggests a series of obligatory measures for mortgage loans. “Any initiative demanding transparency is welcome. Offering a credit in transparent conditions is a way to avoid the non-payment risk. Such regulations are basic in making sure that the people are informed”, says Alin Iacob, editor-in-chief of Conso.ro. “The evolution of risky real estate credits illustrates the need for transparency for all the market opportunities, mainly when it comes to the investors’ point of view”, Reuters comments. “It is hard for me to believe that anyone in this world might say that the interest rate must be X. It was possible in the Mutual Economic Aid Council, but this is the European Union”, said Radu Ghetea, president of the Romanian Banks Association for HotNews.ro. Economy analyst Bogdan Baltazar is also skeptic: “I doubt it is possible. It’s very difficult. It an aberration to impose interest rates. Maybe only in the Euro currency zone. It will be a fine chatting opportunity at its best”, says the former BRD Societe Generale manager. (hotnews.ru)