Volksbank Romania, the third-largest lender in terms of assets, announced it would lower interest rates on mortgages by 1-1.5 percentage points as of February 2009. Officials of Banca Romaneasca are considering the possibility of reducing interest rates on loans as a result of the sharp slowdown experienced by the lender in November.
Other banks are on stand-by, but lending is expected to slow fourfold in 2009, down to 15 percent. “We are analyzing the fairest client policy in terms of interest rates,” Robert Rekkers, Banca Transilvania’s General Manager, told Business Standard.
“I foresee that banks will have to adjust to avoid having too many bad loans. We will adjust interest to a level we feel people will be able to pay, despite the large financing cost,” said the General Manager of Banca Romaneasca, according to NewsIn agency.
