Mortgages could revive in 2009

The new regulations increases financing costs for clients.
“We will meet with BNR officials next week to present them with our point of view,” said the President of the Romanian Banking Association (ARB), Radu Gratian Ghetea.

BNR’s Governor aide, Adrian Vasilescu, said that BNR has notified lenders that the impact of the new regulation will be analyzed after three months.

The housing loan market, estimated at €5 billion in September, was blocked in November, as clients of banks are on stand-by following a 15-20 percent drop in prices of old apartments and houses. One third of these are no longer eligible for the new stricter lending conditions. Furthermore, many of those who want to buy an apartment and have access to financing are on stand-by and wait for prices to further decline.