The very low interest rates represented a trend of previous years which is already terminated, and in 2017, as of June or July, they will increase by 1-2 percentage points of interest on deposits and loans on the banking market in Romania. The reference interest rate will also grow, said on Friday Laszlo Diosi, CEO OTP Bank Romania.
In October 2016, the average interest rate for RON deposits fell to a historic low of 0.99% per annum, while the interest on new deposits fell to a record low of 0.53%. The interest for RON loans also dropped to historic lows in October 2016: 5.51% for balance loans and 5.05% for the new ones, capital.ro informs.
In terms of crediting in 2017, Laszlo Diosi expects a significant increase in corporate investment loans and mortgage loans, while unsecured loans to individuals will register a more moderate growth as compared to 2016.
“The unsecured loan portfolio was very good in 2016 as in 2006, when people simply had no financial difficulty. The new loans granted in 2016 have no problem,” the head of OTP Bank said.
About the debt discharge law, the OTP Bank Romania CEO said that the bank received only two notifications in 2017 and 171 notifications overall.
“Most notified loans were in Swiss francs, and over 60% were lossless, zero flow at the time of notification,” Laszlo Diosi said.