Romania House Prices Seen Climbing – Ctrl Bk

Demand for mortgage loans increased in the first quarter, but at a slower pace compared to the last quarter of 2007 or to bankers’ expectations, the central bank said.

“Expectations regarding demand evolution are still positive, although more moderate. In the Euro area, the evolution of net mortgage demand in the first quarter of 2008 is fundamentally different compared to the situation in Romania, where the dynamics were significantly negative,” the central bank said in its poll which interviewed the top ten lenders according to loans granted to companies and individuals.

Romanian lenders introduced more relaxed terms for consumer loans, which materialized in their acceptance of higher debt levels, smaller down payments and extended maturities, the bank said.

It said net demand for consumer loans in the first quarter exceeded the demand for mortgage loans.

In fact, consumer loans represent by far the bulk of loans granted to population, the central bank said, mentioning credit cards saw the most significant increase in the first quarter.

As to loans granted to non-financial institutions, the central bank noted that crediting terms remained roughly unchanged, excepting loans for SMEs, which became more severe. 

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