Romanian Central Bank publishes new lending rules

Publish date: 26-08-2008
  • Bookmark & Share

Half of the authorized banks in Romania can provide loans under the current regulations by the first week of October, when new rules issued by Romania's National Bank (BNR) go into effect.

The new rules, aimed at curbing lending and lowering credit risks, were published late last week in the Official Gazette, and will go into effect in 45 days.

As of October, banking client debt ratio will be reduced by 10-15 percent, from the current 65-70 percent high, depending on client income.

Local bankers say that the application of new regulations, and more expensive financing, will slow lending growth, especially for foreign currency denominated loans. Furthermore, they indicate that this will widen the gap between local banks and subsidiaries of foreign banks, as the latter are not compelled to abide by BNR rules, but rather operate according to the rules in their home countries.

When deciding on debt ratio, banks must take into account the maximum level of the exchange rate in the past 18 months and the highest interest rate increase from March 2007 and August 2008.

"We will continue to grant loans as we did previously for up 45 days from the time the regulations were published. We hope that this regulation is applied as soon as possible," said Bancpost President, Mihai Bogza.

Business Standard

Avem nevoie de acceptul tău!
Partenerii noștri folosesc cookie-uri pentru personalizarea și măsurarea anunțurilor. Prin acceptarea cookie-urilor, anunțurile afișate vor fi mai relevante pentru tine. Îți mulțumim pentru accept și te informăm că îți poți schimba oricând opțiunea în Politica de Cookie.