Romanian Lenders May Need Ctrl Bk Sanction To File For Insolvency

Romania’s central bank will be able to dismiss insolvency requests of credit institutions if it finds no merits to the claims, according to a government bill aimed to improve insolvency legislation.

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Under the bill, Romanian lenders will need prior approval from the central bank to open insolvency proceedings in court.

In addition, the central bank will be able to send opinions and data on the credit institution to the bankruptcy judge and the designated liquidator during the insolvency process.

The bill will also amend the priority list for repaying receivables in case of insolvency.

The amendments to the insolvency law are also stipulated in the technical memorandum to Romania's EUR13 billion standby agreement with the International Monetary Fund.

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