“The bad news is that depositors could see real negative interest rates; the good news is that investors looking to develop their business will pay lower rates on bank loans, of 3% to 7% a year,” Radu Ghetea told at a conference on small- and medium-sized enterprises organized by Ziarul Financiar.
Ghetea, who also serves as chief executive of state-run CEC Bank, said interest rates on both loans and deposits have settled during the recent period, but further declines are possible.
“As to the deposit rates, it seems there isn’t much room left, but considering the current levels of the central bank’s key lending rate and the Robor and Euribor benchmarks, we may see further declines,” Ghetea said.