Lending conditions will be modified in January 2009, according to BNR’s first vice governor, however the chairman of Romanian Association of Banks (ARB), Radu Ghetea, is not very optimistic with central bank’s decision to loosen the lending regulation. Nevertheless, specialists see the review of the regulation to unclog lending as a necessary measure.

Ghetea is not ‘very optimistic’ about the central bank’s decision

Chairman of ARB, Radu Ghetea, said he is not ‘very optimistic’ about the central bank’s decision on the new lending regulation, saying he does not think that BNR will make any decision in this matter sooner than the next monetary policy session.

“I sent a note to the central bank two days ago, mentioning what measures we think are necessary to streamline lending activity, based on which the lending will continue, given the international climate”, said the chairman of ARB, Radu Gratian Ghetea.

He added that ARB’s point of view forwarded to the central bank includes “only a part of what we had initially submitted to the Ministry of Economy and Finance”, the current version enclosing opinions drawn together with the minister.

“I don’t think BNR could make any decision sooner than the next monetary policy session”, Ghetea added.

All in all, chairman of ARB said he hoped the bankers would meet with the representatives of BNR to talk on the measures that should be taken into consideration in the midst of international crisis.

Bankers and BNR seek resolution to resume lending

Officials of National Bank of Romania, of Ministry of Economy and Finance and of ARB met on Monday night to review the economic-financial situation and seek resolution to resume lending activities.

Bankers proposed to Ministry of Economy and Finances the subsidization of interests for loans granted to small and medium sized enterprises,