The euro-denominated loan price hike season has started when Volksbank, one of the most aggressive banks when it comes to low interest rate offers, applied a retroactive increase of 1.5%, with other bankers anticipating, at least, "small increases" in interest rates. This proves that Romania is not immune to the tension of foreign financial markets, on the contrary: customers who have already taken out loans have found themselves having to repay higher instalments (by as much as 100 euros) and with an indebtedness level of over 60% because of higher interest rates and the depreciation of the RON.

"The trend is to go for a slight increase in the prices of loans in euros. Banks that had cheap offers are now forced to acknowledge the real facts, because the euro has become more expensive both in RON, and in terms of interest rates. Banca Transilvania does not have any cheap euro-denominated products because we wanted to offer a fair price, to reflect even the domestic risk. We can be considered a barometer because we are a Romanian bank," Robert Rekkers, general manager of Banca Transilvania told ZF. However, he adds: "Slight rate moves may also occur at BT. I don't see any sudden significant changes, though."

Rekkers explains that the shortage of cash in euros on the foreign market is spreading to the Romanian market, even though it is "quite liquid in RON" and also in euros.

Sorin Popa, deputy general manager of the retail segment of BRD Soc-Gen says the second biggest bank on the market does not intend to increase interest rates "for now", but anticipates "a minimum increase" of the cost of the euro loans on the entire market.

"We will not take any steps yet, but we could do so if a trend emerges on the market or if we believe we have to rally to other standards. It depends on NBR's moves and on macroeconomic indicators and there could b