Romania's mortgage market, which is isolated from the US credit crunch, is expected to boast the fastest growth rate in Central and Eastern Europe, with improved salaries to largely aid development of housing loans.

"Within the next three years, I expect the CEE mortgage market to register an annual growth rate of 30%, with Romania as the main growth driver," stated Bill Schaub, GE Money's regional mortgage leader in Central and Eastern Europe.

GE Money, the retail financial services arm of US General Electric giant, has been present in Romania since 2006, when it acquired Domenia Credit, Estima Finance and Motoractive financial services firms.

"Wage incomes, the economic climate and interest rate upward or downward trends are the main factors behind the development of Romania's mortgage market. Middle class consolidation also plays a vital role in market development," added Schaub.

Over one third of Romanians want to improve their living conditions over the next five years and are prepared to invest, on average, 20,000 euros, indicates a survey conducted by TNA AISA and commissioned by GE Money.

In comparison, 76% of Czechs and 65% of Russians think about mortgage investments, and earmark 25,000 euros and 20,000 euros, respectively.

The survey took into account the population of the Czech Republic, Poland, Romania and Russia, with data gathered from around 1,000 respondents in rural and urban areas. In all the surveyed countries, the population wants to finance house modifications or improvements with their financial resources. "(...) The penchant for this type of financing from personal resources is a challenge for creditors, which have to persuade customers with confidence and professionalism and also select products depending on the customer's profile and specific needs," explained Schaub.

In late September, the value of