Prima pagină » English » Romanian Ctrl Bker: Mkt Worries Cause Lending Slowdown, Not Ctrl Bk Rules

Romanian Ctrl Bker: Mkt Worries Cause Lending Slowdown, Not Ctrl Bk Rules

The lending slowdown in the last period was caused by the uncertainties on the local and international financial market, not by the central bank’s new regulations regarding household lending, Romania’s central bank governor Mugur Isarescu told a press conference Monday.
Romanian Ctrl Bker: Mkt Worries Cause Lending Slowdown, Not Ctrl Bk Rules
20 oct. 2008, 18:28, English

“The measure to stop lending, adopted by some banks was due to uncertainties on the local and international markets. The population has started to be afraid of the Romanian leu’s oscillations,” Isarescu said.
 
Isarescu warned “those who say that banks cannot give loans due to the new rules of the central bank that the rules do not come from the central bank. It is an attempt to create diversion on the market.”
 
The governor said that the ascending trend of the lending rate would slow down in the following period.
 
“Of course the lending rhythm will decrease. The percent of 110% is too high, we should not consider something like that,” Isarescu said, adding that it will be a mistake for the bankers to discourage lending in local currency.
 
Banks had to amend their loan norms in maximum 45 days from the date of publishing the new regulations regarding loans for natural persons. The deadline was October 6.