Business in Romania blog
The business in Romania blog writes about the Romanian business landscape, doing business in Romania, investing in Romania business and debating on business issues in Romania. Check this Blog's Policy here.

Saturday, April 30, 2005
Business in Romania blog
Governor of the National Bank of Romania Mugur Isarescu insisted that commercial banks cut down interest rates on both credits and deposits.

"I hope I'll see 10-12 per cent interest rates this summer already. Romania enters a capital inflow rise period, and we need to absorb this money. Furthermore, high interests attract speculative capitals, which must be avoided," Isarescu stated in a roundtable on the national currency denomination held at the Chamber of Commerce and Industry of the City of Bucharest.

He emphasised that with the capital account deregulation the competition would rise substantially, so that banks "will have no choice" but to cut down interest rates. Attending the seminar, Radu Gratian Ghetea, head of the Romanian Banks Association, did not share this optimism, and stated banks cannot yet afford to operate such substantial interest cuts.

"If by the end of the year interests paid on deposits will reach 8-10 per cent, then banks will be able to grant credits for an average 16-18 per cent interest," Ghetea estimated. The reasons which made banks work with so high interest rates include, according to Ghetea, the significant costs that banks will incur with the delay in the denomination process.

We all hope to see lower interest the way, I wonder if ING lowered their interest rates for my credit...are they that adaptive?

Posted by Mihai : 4/30/2005 11:28:00 pm National Bank of Romania hopes for lower interest rates
Business in Romania blog
Business in Romania blog

Business Archives

06/01/2004 - 07/01/2004
08/01/2004 - 09/01/2004
09/01/2004 - 10/01/2004
10/01/2004 - 11/01/2004
11/01/2004 - 12/01/2004
12/01/2004 - 01/01/2005
01/01/2005 - 02/01/2005
02/01/2005 - 03/01/2005
03/01/2005 - 04/01/2005
04/01/2005 - 05/01/2005
05/01/2005 - 06/01/2005
06/01/2005 - 07/01/2005
07/01/2005 - 08/01/2005
08/01/2005 - 09/01/2005
09/01/2005 - 10/01/2005
10/01/2005 - 11/01/2005
11/01/2005 - 12/01/2005
12/01/2005 - 01/01/2006
01/01/2006 - 02/01/2006
02/01/2006 - 03/01/2006
This is a Flickr badge showing public photos from Mihai Botea. Make you own badge here.

Add Business in Romania to My Yahoo!

Previous Posts


Business in Romania Feed Burner

Business in Romania is powered by Blogger

This website is proud to be designed by Mihai Dragan

I usually listen to THIS kind of music.