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Wednesday, March 09, 2005

Less Shopping in Rates

Authorities prepare for a new series of regulations for the consumption credit.

At a first glimpse, is seems the new measures would refer mainly to improving the credit return rates. In fact, it is about putting a new limit for the consumption credits and this issue represents an important element in the negotiations with the International Monetary Fund (IMF).
The 5% decrease of the reference interest rate announced by the Central Bank at the end of the week takes the new regulations closer to coming into force.

Prime minister Calin Popescu Tariceanu announced that the authorities are about to establish a series of clear rules for eligibility in consumption credits, in order to ensure the rates' return in time, without imposing tougher credit conditions.

"We don't want to impose tougher conditions for credit obtaining, we just want to define the framework for both the one who obtains the credit and for the institutions offering it".

The relaxing statements of the prime minister are contradicted by those coming from the banking business.

Some expect the decrease of the percentage of the monthly income allowed to be considered as bank rate.

The consumption credits added up to 80,202 billion ROL (2.1 billion euros) in January.

Just as much as data say Romanians working abroad sent some.

Compared to the real estate credit, the consumption credit is 2.4 times larger and 25% of the users live in Bucharest.

Posted by Iulia Rasoiu : 3/09/2005 10:02:00 am