UPDATED: 16. DEC 2015, AT 6:29

UPDATED: President’s comments to hire purchases accepted

THE PARLIAMENT adopted the amendment to the law on consumer loans again, accepting President Andrej Kiska’s comments.

Illustrative stock photoIllustrative stock photo(Source: SME)

The original wording of the change raised concerns that it would ban hire purchases or make the rules for refinancing the loans more difficult.

The changes were supported by 111 of 119 MPs present in parliament, the Denník N daily reported on its website.

The amendment was proposed by Smer MP Róbert Madej who wanted to fight the loan-sharks. Via the amendment he ordered financial institutions to only send money which people borrow from them direct to their bank account or via a postal order. However, he did not realise that this will hinder hire purchases, which work in a way that the loan company sends money directly to the retailer, not the consumer, the Sme daily wrote.

The amendment was also criticised by banks, leasing and loan companies which say that it could ruin their business and result in more administration. They hope the MPs will adopt the changes.

However, Madej defends the amendment. According to him, the amendment does not impact the hire purchase for which the rules are defined in another part of the law, as reported by Sme.

He was backed by both the Finance Ministry and the National Bank of Slovakia (NBS), country’s central bank.

“The provision should be perceived in the context of the whole law,” said NBS spokesperson Martina Solčányiová, as quoted by Sme. “In our opinion, the hire purchase, leasing and refinancing of loans will not be banned.”

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