Economics and trade ministry unveils concept of juridical reform on mortgage financing
The Economics and Trade Ministry (MEC) has unveiled a concept of the legislative framework's reform on mortgage financing in Moldova.
Deputy Economics and Trade Minister Igor Dodon today told a roundtable that the draft law on mortgage, elaborated by the ministry, is to regulate the conditions on exercising the mortgage rights and obligations, to set the mortgage deadline, as well as types of contracts that can be signed.
"The draft also establishes who can offer mortgage credits, who can be mortgagor, how a mortgage contract can be drawn up, and what stipulations it must include, legalisation, registration and concluding the mortgage rights, transmitting or assignment of rights to mortgage, grounds and procedures of cease or modification of mortgage", Dodon said.
To the end that the new law contributes to raising confidence in safety, transparency and accessibility of mortgage financing system, certain legislative documents will be amended: the law on pledge, the law on real estate's cadastre, the civil code, the code on civil procedure and on execution.
The draft law was elaborated jointly with the European Bank for Reconstruction and Development. Under the specialists' estimations, the residential mortgage credits will be about 13 per cent of the entire crediting portfolio by late 2006, against 3-4 per cent in 2005. // Moldpres
Comments