The growth pace is the highest in eight years and is close to the pre-crisis levels, when it reached as much as 20% a year. Banks are practically seeing a return of the boom days of lending and economy.
The fast-paced growth of consumer loans has been driven by the very low interests lately, as well as by renewed consumer confidence in the performance of the economy.
Consumer loan interest rates stand at 8% to 10% per annum, as the central bank’s fiscal policy relaxation steps gave banks room to cut interests. High interest rates hindered lending rebound for a long time after the crisis, reaching as high as 20% per annum in 2009.
On the other hand, the local economy has been growing in the past few years and analysts expect growth in the coming months, as well, which is driving people to spend. This year’s estimated economic growth of 4% to 5% should be mostly fueled by consumer spending. (EUR1=RON4.5110)
(English version by Loredana Fratila-Cristescu)