Bankers were expecting a rebound of lending to the individual customers in the second quarter of the year, after almost two years of stagnation, in the context where they were anticipating both a relaxation of lending norms and higher demand from clients, according to a survey conducted by the BNR (National Bank of Romania). But the announcement of austerity measures imposed by the Government discouraged clients once again and rekindled banks' risk aversion.

In the first three months of the year, banks continued to tighten consumer loan terms given the negative economic forecasts, whilst home loans could be contracted under the same terms as in the previous quarter. The survey's conclusions contradict the messages of confidence sent by bankers, with some players even resuming promotional campaigns for lending products.

Over 36% of responding banks said consumer loan terms had become tighter, especially through the rise in the cost of loans, and through the lower indebtedness level.

Bankers were expecting a rebound of lending to the individual customers in the second quarter of the year, after almost two years of stagnation, in the context where they were anticipating both a relaxation of lending norms and higher demand from clients, according to a survey conducted by the BNR (National Bank of Romania). But the announcement of austerity measures imposed by the Government discouraged clients once again and rekindled banks' risk aversion.

In the first three months of the year, banks continued to tighten consumer loan terms given the negative economic forecasts, whilst home loans could be contracted under the same terms as in the previous quarter. The survey's conclusions contradict the messages of confidence sent by bankers, with some players even resuming promotional campaigns for lending products.

Over 36% of responding banks said consume