Bankers stop trying to stimulate lending

Whereas consumer spending continues to go down, RON loans with interest rates tied to ROBOR indices are about to become more expensive again, now that the three and six month-rates used for consumer and mortgage loans alike have gone up to 7-7.5% a year.

After several tentative attempts in April and May, banks dropped their promotional interest offers meant to make borrowing in RON attractive with interests of less than 10% a year.

The pessimism generated by the 25% salary cut in the public sector and the 24% VAT raise make bankers think of only how to save the ongoing credits by rescheduling payment, dropping almost any commercial action intended to stimulate demand for loans.

Not even the "First Home" mortgage loan scheme is capable of stirring any enthusiasm, either.

On the other side of the market, there is a perception that bankers are not trying hard enough to cut loan costs so that new loans could be taken, given the prolonged recession.

On the other hand, Finance Minister Sebastian Vl`descu is complaining that Romanian companies do not come to seek help from state aid schemes, nor state-provided guarantees for bank loans, mainly through Eximbank, dreaming of tax cuts instead.