New credits interest rates – back to 07-08 level, but clients are missing

The Romanian Central Bank (BNR) show that banks cut the interest rates more seriously in April, in an attempt to revitalise loans. Nevertheless, the demand for consumption credit lacks completely.

In April, DAE for personal needs credits reached 17.5%, significantly dropping in comparison with the previous month, when DAE was 20.3%. [The Effective Annual Interest Rate (DAE) represents the total cost of the credit and includes the interest rate, commissions and life insurance.] What is notable is that the interest rates returned to the level their 2008 level, when BNR was making efforts to reduce the rhythm of crediting.

As for the loans banks granted for households in the Romanian national currency, namely in lei, the average DAE was 11.9% in April, dropping against the 12.4% recorded in March. The companies paid an average interest rate of 10.9%, the lowest level since September 2007