Romania Avg Bank Rate On New Loans Rises To 11.69% In May

Bank rates for new corporate loans went up 0.73 percentage points to 11.66% in May, the data showed.

The average bank interest on existing leu-denominated loans also advanced slightly to 14.26% in May, from 14.23% a month earlier.

The effective annual rate (EAR) on leu-denominated consumer loans stood at 17.2% in May, down from 21.78% in January. The EAR on mortgage loans fell to 11.75%, from 13.63% in January.

Romania’s central bank cut its key rate four times this year, to a record low of 6.25% from 8% in January and the commercial lenders responded by dropping the rates on leu-denominated deposits.

The average interest on existing deposits in lei fell to 7.1% in May from 9.13% in January, while the rates on new deposits decreased to 6.52% from 9.03%.

Average bank interest on existing euro loans stood at 6.5% in May, slightly down compared with January, while rates on new loans in euro reached 5.6%.