Population's deposits barely see a rise, despite still high interest rates

Romanians are less and less willing to save or the incomes they have available for saving are dwindling, reveal data from the NBR, which point to the lowest annual rise for deposits in RON – of 15.5%. “The progression of the population’s savings is not influenced by the progression of the interest rate, but by the population’s ability to save, by Romanians’ available income,” believes Lucian Anghel, chief economist of the BCR (Romanian Commercial Bank). “The decline is not so dramatic if we consider it against the progression of lending.” The current world crisis has not only reduced the availability of loans, but also Romanians’ saving ability. Although banks offered very high interest rates in order to attract more clients and higher sums, Romanians barely increased their deposits. In May, banks still had deposits on offer with 15-16% interest rates per year, while inflation had slowed down towards 6%. Only in June have banks started to cut interest rates, pressured both by businesspeople and by politicians, but even now offers still remain attractive for those willing to save.