Analysts foresee a rapid slowdown for retail credit

Higher interest rates, as a result of the international crisis, tougher measure for funding, as stated in the new regulation of the NBR (National Bank of Romania), and the wide comparison base of the last few years will determine a drastic slowdown in the lending growth rate. The new maximum retail credits set to be contracted, following the credit risk control measures introduced by the NBR, could be 25% lower than at present, which means that the credit growth rate for individual credits will continue to slow down, according to Catalina Constantinescu, senior economist of ABN Amro Bank Romania. “The decline in the maximum sums that a client will be able to borrow will stem from the reduction in the indebtedness level, as well as from banks no longer able to assess a client’s eligibility over the entire lending period using promotional interest rates (which are much lower than standard ones),” says Constantinescu.