Variable loan fees could be eliminated

Ghetea said it is necessary to set variable and fixed components for lending contracts. “The interest has to be variable, because it can not be foreseen long term. Fees should be fixed throughout the entire lending period,” said Ghetea.

He added that the main problem raised by ANPC was connected to variable interest. “There are two types of variable interests in Romania, one based on EURIBOR and ROBOR market indicators, and another on the prime rate, established by the bank, plus a risk margin. Due to the rapid evolution of the two market indicators, we recommend the use of the prime rate, which changes based on market evolution,” Ghetea added.

Applying variable interest protects both clients and banks. CEC, Alpha Bank and Bancpost are discussing with ANPC the possible modification of lending contracts.