BCR, the biggest bank on the Romanian market, had 120 millioneuros' worth of mortgage loans refinanced with other banks,accounting for 8% of the portfolio, after the elimination of theearly repayment fee, as part of Ordinance 50.
"The banking industry has been restructured and I think thereare parts where this needs to continue. At the moment we have thisfamous Ordinance 50 and I think some parts of it are very good,such as the elimination of the early repayment commission, whileothers are not," Dominic Bruynseels, CEO of BCR, told a pressconference organised on the occasion of the 20th anniversary sincethe bank's establishment. At present, the portfolio of mortgageloans is worth 1.5 billion euros, accounting for one third ofretail loans granted by the bank.
BCR faced a wave of criticism from customers, after it chose toimplement Ordinance 50, but held on to the overall cost of loans,although part of the fees charged in the past are no longer allowedunder the current legislation.
Dominic Bruynseels believes it is necessary to change the way theeconomy works, which has so far been driven by internalconsumption.
"I don't think it is necessary to change the way bankers lend, butthe way the economy works. Consumer loans are not what is needed,but loans for investments," says the head of BCR. He anticipateslending will rise by 5-8% next year on the corporate segment and byaround 5% on the individual segment.
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