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Romanian Bk Assoc Head: Banks Want Rate Subsidies For SME Lending

The bankers have proposed the Economy and Finance Ministry to subsidize the interest rates paid for loans taken by the small and medium-size companies, which might be strongly affected by the economic crisis, Romanian Banks’ Association president Radu Ghetea said Thursday.
Romanian Bk Assoc Head: Banks Want Rate Subsidies For SME Lending
27 nov. 2008, 18:51, English

Ghetea said that many small and medium-size companies might even go bankrupt, in the wake of the financial crisis.
 
The bankers also requested a VAT cut to 1.5% when buying the first dwelling, showing that such a measure offers an increased comfort for banks and protection against certain market falls.
 
Also, the bankers think that fiscal deductibility of mortgage loans would be desirable.
 
"The mortgage lending is the engine that keeps the economy moving. In Romania it represents only 10% of the total private lending and is far from being a danger," Ghetea told a seminar.
 
Also, the banker said that the effects of the international financial crisis have touched their peak in October.
 
"I think we have touched our peak in October as regards the influence of the international financial crisis. Lending was very low and interest rates were sometimes abnormal," Ghetea said.
 
Ghetea said earlier Thursday that a further decision regarding household lending rules is not probable in the next few weeks and that the central bank BNR will decide upon the matter after its next monetary policy meeting, scheduled for January 6.