Temporary cut in the interest rate on CHF-denominated loans in order to offset the impact of the stronger CHF May be a valid option, given that both the benchmark rate of the Swiss National Bank and the CHF market rate have reached negative values. C.  Implementing a debt rescheduling scheme, with the award of a compensation by the State Such a solution would be efficient in light of at least four arguments. First and foremost, it would contribute to a higher disposable income of the beneficiaries of this scheme (performing borrowers), with favourable effects on consumption and economic growth. Secondly, it represents a burden-sharing approach among creditors, borrowers and the State. Thirdly, enforcing the relevant law implies favourable effects also in terms of managing the structural liquidity surplus in the banking sector. Fourthly, the measure targets the segment of vulnerable borrowers, with gross monthly incomes of up to lei 3,000, given households’ high degree of indebtedness and its uneven distribution across various income groups. The measure proposed by the Government consists in amending Government Emergency Ordinance 46/2014 by extending its scope of applicability and introducing simpler and more flexible loan rescheduling procedures, and may be applied to CHF-denominated loans as well. The legislative enhancements are aimed at providing some relief to low-income borrowers facing temporary difficulties in repaying their loans, while also improving the mechanism so as to be promoted by banks and requested by eligible debtors.

BIS central bankers’ speeches  7  E.  Public warnings  In the past decade, the NBR has constantly issued public warnings regarding the risks related to foreign currency loans, including CHF-denominated loans, taken by individuals earning incomes in currencies other than the loan currency. These recurrent warnings were disseminated via several communication channels: studies, conferences and seminars on financial stability and supervision issues, legal colloquia (available on the NBR’s website), statements made by central bank representatives during the quarterly press conferences, monthly meetings with the representatives of the Romanian Banking Association and other specialised associations (Association of Financial-Banking Analysts in Romania, National Association of Romanian Exporters and Importers, etc.). Most warnings were issued concomitantly with the release of prudential norms and/or restrictions by the NBR. We hereby underline that these activities are current and permanent, and are reported in the Annual Reports and the Financial Stability Reports published on the NBR’s website. V.  Other countries in the region – approaches to the situation caused by CHF appreciation  The measures taken by other EU Member States to deal with the challenges posed by CHF-denominated loans show that the solutions were different relative to the particular features of such loans in each country. Therefore, Romania must identify solutions that would fit its own situation. To cherry-pick the favourable components of the measures taken by other countries without revealing the context and the associated costs would be counterproductive.