2026-03-13

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A New Draft Law on Mortgage Credits: Greater Transparency and Consumer Protection

The National Financial Market Commission (CNPF) of Moldova has drafted a new law on residential mortgage credit contracts to harmonize national legislation with the European Union acquis and adapt to recent real estate lending market developments. The proposal mandates stricter pre-contractual and contractual disclosure rules, grants borrowers the right to convert foreign-currency loans, caps late fees based on contract duration and borrower circumstances, and requires lenders to notify defaults immediately and periodically. Additionally, the draft establishes minimum timelines before foreclosure, allows direct property sales to settle debts, improves legal safeguards against abusive debt collection, and imposes strict conduct, competency, and remuneration standards for lenders and credit intermediaries.

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National Commission for Financial Markets Moldova

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The National Financial Market Commission (CNPF) has drafted a law establishing clearer rules for credit contracts intended for the purchase or construction of a dwelling, or those under which a pledge on residential real estate is established. The drafting of the project takes place in the context of the Republic of Moldova's commitments to harmonize national legislation with the European Union acquis, and responds to the need to adapt the regulatory framework to recent developments in the real estate lending market.

The draft introduces several measures aimed at protecting consumers and ensuring responsible lending, by establishing clear pre-contractual and contractual information rules.

For loans linked to a foreign currency, additional protection mechanisms are provided, including the consumer's right to request the conversion of the loan into another currency and the lender's obligation to warn the client in case of a significant increase in repayment installments.

The draft introduces additional guarantees for consumers facing payment difficulties. Thus, the lender will be required to inform the consumer from the first day of default and periodically about the outstanding amounts and the consequences of non-performance, while penalties will be capped by law, depending on the contract performance period and the consumer's situation. Furthermore, the draft establishes a minimum period between the declaration of early maturity and the commencement of forced execution, and further limits penalties after early maturity. At the same time, the consumer will be able to request the direct sale of the mortgaged property before execution, according to an expressly regulated procedure. If the amount obtained from the sale of the property does not fully cover the debt, the lender must allow the repayment of the difference in installments adapted to the consumer's situation. In parallel, the legal framework is improved to prevent abusive recovery practices, such as harassment, threats, or unjustified contact with other persons.

Another important element of the draft is the establishment of requirements regarding the conduct of lenders and credit intermediaries, as well as those concerning the skills and requirements regarding the remuneration of personnel involved in granting loans.

The draft also regulates the activities of credit intermediaries, appointed representatives, and non-financial lenders, by establishing a clear regime for market access, organization, and supervision. Thus, the conduct of these activities will be conditioned on registration in public registers managed by the CNPF, compliance with requirements regarding integrity, professional competence, and the capacity to provide services responsibly, as well as the obligation to permanently maintain these conditions.

The draft law on credit contracts offered to consumers for residential real estate will be promoted by the Ministry of Finance, and will subsequently be subject to advisory and public consultation procedures.

Decisions of the Board of Directors of the National Financial Market Commission – March 3, 2026

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