UniCredit Romania has recently raised interests of new euro-denominated loans by one percentage point, as a reaction to rising rates on international markets.
The bank now levies interest rates of 6.95% to 10.9% per annum for euro-denominated loans, depending on the type of financing. "We want a solid expansion rather than an aggressive one," says Adriana Tudorancea, head of Retail Product Development and Management within UniCredit Romania.
Euro loan interest rates have surged internationally as the European Central Bank in December 2005 started a monetary policy tightening cycle. Since then, the benchmark interest for euro loans has risen from 2% to 3.5% per annum at present. Moreover, BCE officials hinted further raises were necessary to curb euro zone inflationary pressures.
This month, BRD-SocGen, the second leading player in the system, made a similar move, offering the same explanation, the rise in the benchmark interest on euro. On the other hand, BCR, for instance, decided to cut the rate for real estate loans in euros by 1.2% at the end of last week.
UniCredit is getting ready to bring its retail products in line with those of HVB-Tiriac Bank given that the two banks' merger should be concluded by midyear. The bank's new product and services portfolio is now awaiting approval from the board of directors.
Starting June, Adriana Tudorancea, 36, will be running the department for the Development and Management of Retail Products and Customer Segments within UniCredit Tiriac bank.
She says the bank will focus on the sale of loans for real estate investments, followed by home equity loans in 2007. As a matter of fact, sales of mortgage loans will be also bolstered by the laxer ruling framework generated by NBR's decision to drop the advance payment of 25% of the value of financed goods.
"Personally, I see NBR's proje
