Economic Implications of Law no. 77/2016 on the Housing Loans Market

The current paper presents a quantitative assessment of the economic implications of Law no. 77/2016 on the giving in payment of immovable property for the discharge of obligations arising from loans, covering the reference period 13 May 2016 – 28 November 2023. Using official data from the National Agency for Cadastre and Real Estate Publicity, the Superior Council of Magistracy, the National Bank of Romania, and the Alternative Banking Dispute Resolution Centre, the study offers an empirical perspective on the law’s actual impact on the mortgage market. The results indicate that datio in solutum remained a marginal phenomenon, affecting fewer than 9% of real estate-secured loans during the analysed period. Contrary to initial claims of systemic risk, Law no. 77/2016 functioned as a last-resort mechanism for distressed debtors without destabilizing the contractual lending framework. The study also identifies a post-2020 legislative tightening that significantly reduced access to this legal remedy. A critical weakness observed is the underutilisation of alternative dispute resolution mechanisms, prompting the authors to recommend greater emphasis on financial education and mediation. Overall, the findings support the view that Law no. 77/2016 has served a targeted, corrective function rather than a disruptive one, and its measured application may continue to contribute to a more balanced and socially responsive housing finance system in Romania.