Schreiner, Volksbank: Mortgage demand plunged 95%

Mortgage demand plunged 95 percent compared to 2008, and this segment will probably bounce back in the coming two-three years, Volksbank's President, Gerald Schreiner, said.

"The problem is not whether banks want to grant loans. I believe that people are reluctant enough when it comes to taking out a loan, because they do not yet know whether they will lose their job in the coming months and how long the crisis will last. Once these problems are solved, loan demand will resume growth," Schreiner said.

Volksbank's President added that Romanian lenders are usually subject to a high level of provisioning, but do not have liquidity-related difficulties. According to Romanian Accounting Standards (RAS), the Austrian bank will register losses at the end of the first three quarters of 2009, but Schreiner expects €46-48 million in gross profit at the end of 2009, based on International Financial Reporting Standards (IFRS).

The official added that prices on the real estate market have begun levelling off, after the sharp increase in the past few years.

"A recent study indicated that there is need for 300,000 new apartments in Bucharest. Things have not changed. But uncertainties regarding taking out a loan are still present. People wonder: will I lose my job? how long will the crisis last? how will market prices evolve? I believe that Romanians must first regain their confidence in order to resume borrowing," Schreiner said.

standard.money.ro