“We are taking an important step, which is at the same time both bold and necessary, and we will provide mortgage loans only in Romanian lei,” said Ioana Mihai, head of BCR’s secured loans division.
Euro-denominated loans will still be available to borrowers whose income is in foreign currency, she added.
“Though many of our customers believe foreign currency loans are cheaper, we expect domestic currency lending to cost significantly less in the long run, particularly if we consider the upward trend of the EURIBOR rate and the negative impact of the exchange rate,” Mihai said.
Romania’s central bank announced last year a series of regulations to reduce bank lending in foreign currency for households, after non-performing loans in the sector had risen alarmingly.