Parliament rejects loan interest limits, bill resubmitted
On Wednesday, Parliament voted to reject a bill which would have set limits on annual interest rates on loans, especially on payday loans.
The bill collected 47 votes, but needed four more; 15 MPs abstained. The bill has now been resubmitted and could be passed before the end of February.
“Yes, today's vote was a real surprise,” Kristen Michal, Reform Party faction head, told Delfi. “IRL and the Center Party have been vocal on limiting text message loans and we assumed they would support the bill,” he said.
IRL Chairman Urmas Reinsalu said the government is no longer able-bodied, asking for IRL's support as it can not relay on its coalition partner, he said, adding that IRL will wait until the bill is resubmitted to Parliament.
The bill aims to harmonize rules and regulations for companies offering loans, by increasing requirements for non-bank lenders.
The bill, if passed, would also limit the annual percentage rates to no more than triple the rates offered by banks.