Leu-denominated loans for individuals became around 0.2% more expensive in July after four consecutive months of decline, and the average interest rate reached 12.1% per annum, according to central bank (BNR) data.
Thus, while deposit interests stayed at 6.7% per year, the margin climbed to 5.4%, up almost 1% from the same period of last year.
Leu-denominated loan interests leapt by almost 2% at the start of this year, to 13.5% per year, but subsequently reverted to a trend of gradual decline. However, cheaper lending was constantly accompanied by lower deposit interest, so that the margin has been almost constant since spring.
However, since deposit interests stabilized close to the key rate of 6.25% at present, bankers do not see a substantial cheapening of leu lending, either.
Bankers are not wiling to relinquish interest margins since they are still feeling revenue pressure on the weak new loan sales. Moreover, bad loans are still piling up and banks need revenue to cover provision charges.
After the slight spring easing, interest rates for loans aimed at individual clients started rising again in July. The largest increase was registered in the case of unsecured consumer loans. Interest rates for leu-denominated mortgage loans also rose, by a quarter of a percentage point, to 9.4% per annum.
On the other hand, companies managed to negotiate cheaper loans in March, both for leu and euro. Euro margin slid by 0.3%, to 3.1%, while leu margin rose by 0.1% to 4% because deposit interests fell even faster than loan interests. The margin, however, is almost two percent lower than it was in July last year.
(English version by Catalina Apostoiu; Editing by Loredana Fratila-Cristescu, Radu Bostan)