Bankers make instalment on a mortgage loan 20% more expensive

Bankers continued to make loans for the population more expensive in August, with a significant rise being recorded by interests on RON-denominated consumer loans, which are currently more expensive than before the crisis, with the annual percentage rate climbing to 19.3% a year.
Euro-denominated mortgage loans have also become around two percent more expensive over the last few months, with the annual percentage rate climbing from 5.6% to 7.4% a year, according to data from the NBR (National Bank of Romania). Therefore, the monthly instalment on a 50,000-euro, 30-year mortgage loan, has risen from 280 to 330 euros, i.e. by 20%.
"The increase in the annual percentage rate was generated by the rise in certain commissions, amid an unchanged nominal interest," says Anca Bidian, general manager of Kiwi Finance, the biggest credit broker on the Romanian market.
Bankers had previously warned that the modifications resulting from the implementation of Ordinance 50 would lead to more expensive loans.