The interests on euro have fallen on the international markets, but bankers say that we cannot yet expect credits to become cheaper on the domestic market, given that refinancing costs are high.
Still, those who took out loans in the past whose interest was tied to EURIBOR are already feeling the effects of the interest cuts operated by the European Central Bank.
"The trend will remain upward, due to the sovereign risk. These increases (of the cost for the sovereign risk perceived i.e.) exceed any interest cut of the European Central Bank," says Lucian Cojocaru, commercial executive manager of BRD-SocGen.
He says the BRD is getting funds from its shareholder, Societe Generale, at a fixed margin above EURIBOR, but the banks that have to pay for the cost of the sovereign risk are now in a difficult situation.
"Interests will go down at some point, but it is not yet sure when. First of all, the sovereign risk has to go down, and then the turmoil on the international markets needs to end," Cojocaru adds.
However, Roxana Halmageanu, head of the product development department of Piraeus Bank, sees a segment of clients that can enjoy the decline in euro interests abroad.
"The clients that took out loans with variable interest tied to the EURIBOR index are already feeling the positive effects of the relaxation of the monetary policy of the European Central Bank. This is due to the decline of the interest rate applied to the credit in question in line with the contractual provisions and independent of the bank's will," Halmageanu says.
Banks' analysts, however, see the credits in euros becoming more expensive as likely.
"I don't think we can expect loans in euros to become cheaper on the domestic market, but rather more expensive because of the global crisis and of the perception that Romania's sovereign risk has increased lately.