"For the first time in European history, we are talking about a possibility of certifying credit providers in a certain way. They would receive what is called 'a European passport' and would be able to operate across the EU," Šadžius, who spoke on behalf of the EU Council, told BNS in Strasbourg after the vote by the European Parliament.
The minister said this would increase competition and improve conditions for customers.
"The fragmentation of this market thus decreases and competition increases. Amid increased competition, credit providers will do their best to take care of their potential customers," he told BNS.
The European Parliament on Tuesday provisionally approved a new directive outlining rules for mortgages on residential property. Under the directive, borrowers will have to be better informed about the costs and risks of taking on a mortgage and early repayment will be made easier.
Šadžius says that a considerable part of the requirements of the new directive are already in force in Lithuania.
"In Lithuania, we have the recently-adopted Rules for Responsible Borrowing. In many respects, these rules are in line with what this directive says," he said.
However, there will be new requirements as well.
"Apparently, the state will have additional obligations to establish certain standards for informing customers and, possibly, tighter rules for assessing their creditworthiness," the minister said.
Before the directive can be finally adopted, EU member states are to agree on whether to allow the European Commission or other authority to check how the rules are transposed into national legislation.
Lithuania, which is holding the rotating EU Council presidency, expects such agreement to be reached by the end of the year.
