EU Banking Resolution Framework – Publication Of Romanian Draft Law Transposing BRRD

On 11 June 2015, the Romanian Ministry of Public Finance published the draft law transposing into Romanian legislation the EU Directive 2014/59/EU of the European Parliament and of the Council establishing a framework for the recovery and resolution of credit institutions and investment firms ("BRRD") ("BRR Draft Law").

Pursuant to the substantiation note, the BRR Draft Law aims is to accurately transpose the provisions of the BRRD into Romanian legislation and confirms, among others, the resolution tools applicable in Romania and the competent local authorities.

The BRR Draft Law reflects the resolution tools introduced by the BRRD, namely: (i) sale of business tool; (ii) the bridge institution tool; (iii) the asset separation tool and (iv) the bail-in tool, but no additional tools are currently envisaged.