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Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at [email protected] 

 

RO banks keep widening interest rate spread in August

The spread between interest rates on new bank loans for the population and new deposits in Romania increased to 5.72pp in August from 5.6pp in July, according to data quoted by Ziarul Financiar.

Previously, the spread had narrowed to 4.9pp in April from 6.13pp in February.

In a perfect market, the rising margin could reflect stronger demand for loans - but also excessive liquidity.

The average interest on consumer loans reached 9.78% (per year), while average interest on mortgages rose to 5.68% in August. Romania's National Bank (BNR) sees the headline inflation no higher than 3% over the two-year forecast horizon, falling under 2.5% at the end of the period.

In the first eight months of 2020, local banks granted new retail loans denominated in local currency at an average interest rate between 6.67% and 8.05%.

For deposits, the average interest rate ranged between 1.66% and 1.93%.

(Photo: Octav Ganea/ Inquam Photos)

[email protected]

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Profile picture for user andreich
Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at [email protected] 

 

RO banks keep widening interest rate spread in August

The spread between interest rates on new bank loans for the population and new deposits in Romania increased to 5.72pp in August from 5.6pp in July, according to data quoted by Ziarul Financiar.

Previously, the spread had narrowed to 4.9pp in April from 6.13pp in February.

In a perfect market, the rising margin could reflect stronger demand for loans - but also excessive liquidity.

The average interest on consumer loans reached 9.78% (per year), while average interest on mortgages rose to 5.68% in August. Romania's National Bank (BNR) sees the headline inflation no higher than 3% over the two-year forecast horizon, falling under 2.5% at the end of the period.

In the first eight months of 2020, local banks granted new retail loans denominated in local currency at an average interest rate between 6.67% and 8.05%.

For deposits, the average interest rate ranged between 1.66% and 1.93%.

(Photo: Octav Ganea/ Inquam Photos)

[email protected]

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