Banks are not rushing to slash loan interests and say there isno demand from clients anyway.
All bankers are glad the NBR cut interest rates by half apercentage point, to 7.5%, but when it comes to them reducing RONloan interests, they reply interest rates for clients will only bereduced gradually and in small steps and they continue to blame thelack of demand.
While Valentin Lazea, NBR chief-economist says "the ball is nowin banks' court", bankers maintain the NBR would need to enhanceits interest rate reduction signal.
"The NBR surprised us in a pleasant way. The move is cominglate, but it's good, anyway. A further similar step would be a signof professionalism, but I do not believe it will come any timesoon," states Misu Negritoiu, general manager of ING BankRomania.
Bankers' problem is the high level of interest rates on theinterbank market, clearly above the NBR's interest, meaning higherfinancing costs. "(...) Should banks quickly decide to cut RON loaninterests, this would not boost lending because many people arestill fearful, there is the perception that it is from now on thatthe crisis fallout will emerge. At any rate, NBR's move is a goodsignal for the start of the year," comments Claudiu Cercel,vice-president for financial markets with BRD-SocGen, the secondlargest bank on the market.
Rasvan Radu, chief executive of UniCredit Tiriac Bank, says RONloan interest rates are set to go down a little, but not enough. Hebelieves NBR's move could also be meant to ease the FinanceMinistry's burden.
Lucian Croitoru, the adviser of NBR governor Mugur Isarescu,states banks need to cut loan interest rates to encourageentrepreneurs to come with investment projects.
BCR, the biggest bank domestically, sees NBR's move as a signalfor an ongoing gradual reduction of interest rates.
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