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Romanian Mortgage Lending To Revive In A Year At Most – Bk Assoc Head

Mortgage lending in Romania will revive in less than a year as there is still a market and, in spite of the crisis, clients are still looking to buy property, Romanian Banks’ Association ARB president Radu Ghetea said Thursday.
Romanian Mortgage Lending To Revive In A Year At Most - Bk Assoc Head
26 feb. 2009, 12:47, English

“This is a transition period for Romania’s mortgage lending market as there are still high opportunities and high demand for mortgage loans. The time of real estate speculations is over (…) and in a relatively short period, less than a year, I see a recovery of mortgage loans,” Ghetea said in a conference on real estate sector.

Ghetea’s estimations are grounded on governmental programs in both Romania and the European Union that aim to boost the construction sector.

Ghetea said ARB created a commission within the institution that analyses the mortgage lending and ways to revive it in times of crisis.

The bankers are waiting the number of pay delays to grow every day, Ghetea said. "We do not have to panic, but have to treat the issue carefully. Many banks announced restructures and re-schedules of the loans in order to give clients the opportunity to pay in a slower way, but fulfill their obligations," Ghetea said.

There are still banks on the market that offer mortgage loans, that proves there is still a market on this sector and those who request such loans at banks cannot wait endlessly for prices to drop, Ghetea added.