Yesterday, 7th of February, the bill of law on conversion of CHF loans was declared unconstitutional by the Constitutional Court of Romania.

The bill of law was approved by the Chamber of Deputies on 18th of October 2016 but, on October 24 it was reverted by the Government to the Constitutional Court.

The President of the Constitutional Court, announced that the bill of law was declared unconstitutional because it breaks the principle of bicameralism and because it is not in compliance with the European directives.

In light of the above, consumers having contracted CHF-denominated loans have the possibility to invoke before the courts the provisions of the Civil Code regarding the hardship and unpredictability principle.

Alina Moldovan
Managing Partner FIRON BAR-NIR SCA