A draft law on loan agreements offered to consumers for the purchase of residential real estate has been developed by the National Financial Market Commission and is being promoted by the Ministry of Finance, which is holding consultations with stakeholders to finalize the draft.
According to the document, banks and lenders are required to provide full information on costs and risks before the documents are signed, establish clear rules for advertising such loans, limit penalties, introduce restructuring measures in the event of payment difficulties, and use out-of-court dispute resolution.
The customer’s right to request the conversion of a foreign-currency loan and to receive a warning when payments increase is also mandatory. In addition, the document regulates the pre-contractual stage of mortgage lending. Lenders are encouraged to establish in advance guarantees of comparability for loan offers, as well as minimum standards for the form and content of loan agreements.
