Credits will become cheaper considerably within few years
Moldovan banks will considerably reduce the cost of credits, because there is expected that inflation will go down to 5% by the end of 2012. The statement was provided by President of the National Bank of Moldova (NBM) Dorin Dragutanu.
During an interview with the Economist Moldova newspaper, he said that this "will allow providing credits at the 4-8% interest rate for 3-5 years".
"Prices went up to 8.1% in March 2010, and everyone said the NBM failed to control the inflation, which will be 20-25%. I said there is no reason for the 20-25% inflation level. The last forecast we made public in November shows the 7.8% inflation. It will probably be 7.9% after prices on fuel changed", the NBM President said.
According to him, it is not so easy to cut down credit interest rates, because banks must create a respective risk fund. The average credit interest rate in lei was 15.24% in November 2010, 22.7% in 2008, and 18.8% in 2009.
Dragutanu said "the crediting now is the most difficult, because the Moldovan banking system suffered from the world financial crisis, but the thirst for money urged banks to a higher activity in 2010".
"The credit amount provided monthly in 2010 is higher than in 2009. There were provided lei credits at the amount of 1.91 billion lei in October, and at the amount of 517 million in 2009. Banks had money; the question is what did clients asked? Many clients are on the verge of bankruptcy, so there are no long-term projects. We had a well-grounded demand on a very inconsiderable crediting in the end of 2009 - beginning of 2010. So far, we do not see a mass demand on serious projects. The financial condition is good, but the business is exposed to some risk. The financial education of entrepreneurs, their abilities to make a business project leaves much to be desired. The times, when they could have a credit on a security, went by. Now, a banker asks the person, who is interested in having a credit, what he will do with the money, did he assessed risks, what happens if there is lost a market segment, but entrepreneurs are not ready to answer all these questions", he said.
Dragutanu said that banks will be careful when provide credits to wine producing companies and construction companies.
"The balance of credits provided in the wine producing field reached 1.4 billion lei by September 30, which is 5.8% of the aggregate credit amount. Their share was 17% in 2006. Bankers avoid having deals with wine producers. People took up loans and planted thousand hectares of vineyards before the crisis, hoping to flood the whole Russia with wines. That was a wine utopia. The credit amount went down 217 million lei, starting from 2006, when there was imposed an embargo, till now; and the each third credit is a problem one", he said.
The credits in the wine producing field went down 1% in 2010, in conditions, when the credit remainder is equal to the aggregate cost of wine exports during 9 months. The balance of credits for real estate and construction is 3.2 billion lei, and the share of problem credits is 17%.
Infotag
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