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‘We like it or not, the risk of crisis exists,’ Competition Council head says

The Competition Council will propose to the National Bank of Romania to facilitate the refinancing of the credits in RON, as it has already done regarding the conversion of foreign currency loans into RON, Bogdan Chiriţoiu, President of the Competition Council (CC), said in a debate on capping the bank interest rate.

“We want to go further with refinancing of credits. BNR has made steps ahead in the past years. (…) We would like to facilitate and restructure the loans in RON. If I were to move from one bank to another, for a better interest rate, there should be no risk that the bank says the regulations do not allow this move. We would like to act in the same logic of the conversion of foreign currency loans to RON and to implement it to the restructuring of credits in RON. This is what we want to discuss with BNR,” Chiritoiu said on Tuesday, capital.ro reports.

In regard to capping the interest rates, Chiritoiu said there are situations involving vulnerable clients, with poor financial education and they should be protected. “The issue of capping is to be discussed, but there are several examples in the EU countries and in the neighbouring countries,” he added.

The CC head said the division between banks and non-financial institutions should not be very tough, as the latter are dealing with a share of customers to which the banks do not have an easy access.

“We like it or not, there is the risk of crisis. We have overcome the period of low inflation rate, of low interest rates and the economic developments will push towards higher interest rates, although such issues have been alleviated after the crisis. The number of those facing payment difficulties is lower, but there is the risk that things might turn worse in the coming period. We should be concerned to make things work for the citizens and for the sector’s stability,” Bogdan Chiritoiu said.

 

 

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