22 C
May 17, 2021

ARB: Credit lines drawn from EBRD, EIB and IFC should not be included in the reserve ratio

The Romanian Association of Banks (ARB) is once again asking the National Bank of Romania (BNR) not to include the credit lines drawn from international financial bodies – such as the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB) and the World Bank’s IFC – in the required reserve ratio (RRR) calculations, Radu Gratian Ghetea, the president of the ARB, stated for Agerpres.

‘From the banks’ point of view we consider that among other things the cost of credit is very important for economic recovery and, in order to reduce it so that we would have a normal recovery in Romania, we should focus on three directions, namely the measures that should be taken by the BNR, by the Government and the legislative measures’ Ghetea stated while attending a conference on banking issues. He pointed out that a part of the solicited measures have already been adopted by the central bank.

The ARB is also asking for the revising of commissions.

‘Some adjustments have been made, namely the banks can deduct up to 25 per cent of the value of guarantees. BNR has promised to us that after some time it will review whether there is a need to hike that percentage. We believe that in the given conditions when bad credits are rising by the day it is necessary to move closer to the international standards and to take into account the guarantees’ Ghetea added.

In what concerns the measures that should be adopted by the Government, Ghetea stated that the ‘First House’ program is a positive example given the banks’ high interest in taking part in it and the low interest rates, against the background of risk mitigation.

CEC Bank credit balance up by 9.74 per cent

Radu Ghetea, who is also the president of CEC Bank, pointed out that the bank’s credit balance has reached a level of RON 8.93 bln after the first five months, up by 9.74 per cent compared to the level registered at the end of last year. Of that, the credits offered to physical persons represent 59 per cent with a balance of approximately RON 5.29 bln, up by 1.57 per cent.

At the end of last year the credits offered by CEC Bank totaled RON 8.14 bln. At the end of May the mortgage loans totaled RON 715 M, up from RON 615 M registered in the same period last year and they maintained a share of 8 per cent in the total credits offered to physical persons. At the same time, the corporate segment has totaled a credit balance of RON 317 M, slightly down from RON 345 M.

Of the total loans offered to companies, the credits destined for the agricultural sector totaled RON 559 M, up from a RON 345 M level registered in the same period last year, having a share of 16 per cent.

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