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Ghetea: Interest rates for credits dropping
Radu Gratian Ghetea, the president of the Romanian Association of Banks considers that interest rates for credits will continue to drop as the Central Bank, BNR, has given many signals for their decrease, a factor which will determine the increase of demand for loans.
He showed that interest rates will drop for the whole range of credits which will lead to an increase of real estate sales and a return of mortgages.
Ghetea explained that the bank percentage within the interest rate represents the risk level the bank assumes, a level which may drop with the rising competition in the banking system. He gave the example of electronic tenders in the SEAP system where banks finance town halls with less than 1% because local public authorities represent a low risk.