A third of the people who have gotten loans from local banks in the last year to buy a home have a debt ratio of over 55%. This means that their monthly instalments account for more than half of their monthly earnings, according to the National Committee on Macroprudential Surveillance (CNSM), reports local Ziarul Financiar.

It is the first strong signal that the increase in people’s indebtedness could have “major negative effects” on the financial system. During the crisis years, Romania’s National Bank (BNR) allowed a debt ratio of 80%.

Apartment prices in Bucharest rose on average by 8% in Bucharest in September compared to September 2016. They also rose by 3% over August, according to Ziarul Financiar and Coldwell Bankers.

“2017 was a year of positive expectations, but it's almost over. I can see that banks have already begun to put a brake on lending to certain types of real estate investors,” said Gabriel Cretu, managing partner at Adwisers IFN.

The National Committee for Macroprudential Supervision brings together representatives of Romania’s National Bank of Romania, the Financial Supervisory Authority (ASF) and the Finance Ministry.

editor@romania-insider.com