Interest rate for credits in euros down from 9 to 8%

The spread between interests operated by banks for individual clients for credits in euros and those paid for deposits has lowered significantly over the past year. Whereas in June last year, the interest margin for euros stood at almost 6.5 percentage points, halfway through this year it had gone down to 4.7 percentage points, NBR (National Bank of Romania) data show. The spread lowered almost without a correction, given that the bankers reduced their interest rates for credits and increased the interest rates paid for the clients’ deposits. The average interest for credits in euros taken out by the population fell to 8% in June this year, as compared with 9% in June 2006. The costs of taking out credits in euros went down by over 10% in one year. Under pressure from competitors, the Romanian bankers reduced the costs of credits in euros even despite an increase in the reference interest rate by the European Central Bank (ECB).