Darius Valcov: Banks do not intend to leave Romania, their profit will still be by 20-30% above the EU average

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Darius Valcov, economic adviser to Prime Minister Viorica Dancila, claims the banks do not intend to give up their operations in Romania, although their profit will not be three times the EU average, but it will still be by 20-30% higher, following the coming into force of GEO 114/2018.

“Someone said the banks will leave. The banks are not going to leave, they will still have profit by 20-30% above the EU average. Down from three times the EU average. We believe this level is enough. (…) We, I mean the Government and the PSD-ALDE ruling coalition,” Darius Valcov said Monday evening for TVR 1 public television.

Valcov said the Government’s target is to bring the interest rates paid by the citizens down by half.

“When we made this decision, we have followed the banks’ behavior in the past 30 years and we learned that, with no exception, every year, the interest rates for credit are 2-3-4-5, up to seven times higher than in the rest of the European Union. (…) Each time we got the answer related to the country risk. This increase in the past two years was artificial, with no actual reason. (…) During the talks I’ve told them one thing: when we want to continue the relation between the Government and the banks, we have to cut the interest rates by half. Why? Even then the profit will be by 20-30% higher than the EU average. (…) By the end of the year, the Government has set as target to have interest rates for Romanians reduced by half,” Darius Valcov said.

 

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