Real estate loans slow down in first two months of 2008

The volume of real estate and mortgage loans went up by 4-5% in the first two months of the year, from rates of 7-10% registered in the last few months of 2007, after the demand for loans, both in RON and in foreign currency, witnessed a slowdown. The volume of real estate and mortgage loans climbed almost 4% in February and reached 15.49 billion RON (equivalent to 4.15 billion euros), according to NBR (National Bank of Romania) data. In January, the increase amounted to almost 5%, while in second half of last year the growth rate stood at 7% to 10%, with one exception. Loans in foreign currency, which account for over 90% of the real estate funding granted by banks, continued to experience a slower growth rate. In February, their volume went up by 4%, to a sum equivalent of almost 14 billion RON (3.75 billion euros). This was the fourth consecutive month of a slower growth rate, after the 10% peak registered in November last year. Loans in RON in turn continued to see modest growth rates, with their volume climbing by less than 2%, after a marginal increase in January.