The increase in costs for loans led to the most significant annual slowing of non-governmental loans in July for the past ten months, of 55.8 percent, to RON 178.69 billion (€50 million).
The application of lending restrictions for the population, and increased costs for loans, as well as other obstacles imposed, could lead to a rise in non-governmental loans in 2008 of a mere 40 percent, below advances registered in past years, say bankers.
“The July slowing is on foreign currency denominated loans. Lending would have slowed even if restrictions had not been imposed by BNR, because it would be difficult to maintain the rhythm of growth registered last year, when lending conditions were more relaxed for the population. We believe that the non-governmental lending advance will be 40 percent this year,” according to a statement for Business Standard by Ionut Dumitru, head of the Macroeconomic Research Department of Raiffeisen Bank. However, bankers are expecting a considerable advance in loans this year until such time as the new regulations go into effect.
