Thus, the volume of new consumer loans hadn’t touched such a value since august 2008, right before the burst of the financial crisis but unlike then, banks rarely grant loans in euros.
“The decreasing trend in interest rates as well as the frequent marketing campaigns of banks triggered a rising demand in consumer loans. (…) Consumer loans are over 90% made in Romanian lei nowadays,“ said Adrian Jantea, director with BRD retail department.
At an aggregated level, new consumer loans in Romanian lei were almost RON5 billion between January to May 2015, up one fifth from the same period a year ago.
Consumer loans were higher by volume on the real estate segment as well, at RON3.3 billion in the first five months, up 60% compared with January-May a year ago. In May alone, real estate consumer loans totaled almost RON900 million.
In 2007-2008, banks granted consumer loans for real estate acquisitions up to EUR200 million (nearly RON750 million), while now the lending in euros sets at less than EUR10 million.
The central bank has severely restricted the lending in euros and the banks do no longer have resources to support loans in euro as most of the financing from abroad was withdrawn by stockholders during the financial crisis. Moreover, interests rates in Romanian lei were even lower than those in euros and the debtors have no reason to undertake a foreign currency risk.
(English version by Manuela Panescu)