Romania Central Bank Says Consumer Credit Growth Limited

Romanian central bank governor Mugur Isarescu Thursday said local bankers shouldn’t have illusions about being able to resume consumer lending at pre-crisis levels, adding that the banks should focus on corporate loans instead.

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"I don't think (the banks) can find a wide enough scope to increase consumer lending, because those who are eligible to obtain loans have already borrowed money," Isarescu told a news conference.

"Therefore, the banks must not have any illusion as to finding a substantial market (…) comparable to the one in 2006-2008, regarding both consumer and mortgage lending," he added.

Isarescu said consumer lending would probably remain stable or increase only marginally in the coming future, mentioning the banks should increase lending in the corporate sector and extend more credit lines to projects that receive European co-financing.

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