Refinancing of old loans will remain difficult even after thecapping of the early repayment fee, because bankers are muchstricter in the evaluation of their clients now than two years ago,with fewer people currently able to borrow sufficient amounts tocover older debts, although interest rates have fallen lately. Sobankers say we will not witness a market readjustment.
"The market is quite tight - interest rate differences from onebank to another are small - many banks have tightened their lendingpolicies and clients' incomes are dwindling. It is difficult torefinance a loan at present," says Lucian Cojocaru, executivemanager of the commercial pole of the BRD network, the secondlargest bank on the Romanian market.
Once the new ordinance on consumer loans comes into force, bankswill be allowed to charge an early repayment fee of no more than 1%(even 0.5% if the repayment occurs in the last contract year) andonly for fixed interest rate loans, not for loans with a variableinterest rate.
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