Radu Ghetea, president of the association, believes the proposals must not be discussed in the press, but only between the banks and the BNR.
“These proposals are not meant for public discussion. We have sent a set of suggestions to the central bank. We have discussed them. We will receive the BNR’s point of view and then discuss it. Maybe we will return with new suggestions. This is a rather delicate process.”
Even if he doesn’t talk about proposals, he gives a deadline for the application of the regulation: sometime in October. This means the exchange of “suggestions” between the central bank and the ARB will continue.
After several months during which central bank governor Mugur Isarescu kept referring to the fact that prudential measures were being prepared on foreign currency loans, the central bank has published a draft regulation for which it expected proposals and observations.
Unlike in other similar situations, bankers refrained from making public comments, leaving it for analysts to comment on the potential implications of the restrictions considered by the BNR.
Such being the case, it remains for the central bank to publish a final form of the regulation and let the entire market find out how lending to individuals will continue.
These measures that appear to encourage lending in Romanian currency come late, after loans in euros have monopolized the market of mortgage lending, with the Swiss franc also grabbing a significant share of mortgage-secured consumer loans.
The central bank’s planned restrictions are not supposed to affect the government’s “First Home” scheme, but the situation is not clear for the time being. Although it is supported by the government, not even this scheme that encourages mortgage lending promotes loans in the Romanian currency, but almost exclusively includes loans in euros.
(English version by Daniela Stoican; Editing by Radu Bostan)