Negritoiu: The devaluation of the leu leads to a rise in interest on loans, because this increases bank costs

“We are fighting more than the National Bank to limit foreign currency loans, because the foreign currency risk is imperceptible most of the time,” Negritoiu said. “If we separate the transfer risk from the risk of lifting convertibility, this is reflected in a rise in financial costs, and subsequently in an increase in interest, as has already happened. The leu’s devaluation is felt, and is passed on in the form of an increase in interest, and the cost of loans in lei rises more rapidly than that of foreign currency loans,” added Negritoiu.

The effect of the leu’s devaluation is thus added to the National Bank of Romania’s (BNR) monetary policy interest increase of 2 percent, from an annual 7 percent in October, to 9 percent in February, which lead to a rise in interbank interest, reference for variable bank loan interest. (NewsIn)