OTP Bank Romania: Dropping Early Repayment Fee Won’t Affect Credit Costs

„In an ideal market, there would be no point in having these charges. Eliminating early loan repayment fees is unlikely to affect prices on the short-term,” said Gabriel Cretu, network and sales manager at OTP Bank. „There will always be banks interested to tap into the market and gain ground.”

Cretu is the first Romanian banker to say the measure would not have immediate negative impact on consumers. The vast majority of bankers opposed the government’s plan to eliminate early loan repayment charges, suggesting the measure would trigger increased loan costs for consumers.