Rate of interest on bank credits drops to historical minimum level of 8.34 per cent annually in Moldova

Chisinau, 21 February /MOLDPRES/ - The average interest rate on the credits in national currency, provided by Moldovan banks, in last January dropped to a historical minimum level of 8.34 per cent annually, against 9.80 per cent in January 2018, according to data put out by the National Bank of Moldova (BNM).   

It is the ninth month in a row when the interest is maintaining under nine per cent. The period with the relatively low interests will continue, in the conditions of a surplus of liquidity in the banking system, financial experts said.    

The interest had a decreasing trend after January 2009, when the interest rate grew to 23.25 per cent per all the system and the credits borrowed by private people reached an even higher level of 24.19 per cent. A long period of cheapening of banking financings followed, provided in November 2014 at an average interest rate on the banking system of 9.81 per cent annually; yet, as a result of the banking crisis, the interest rate increased and reached the highest level in the last years of 16.09 per cent in January 2016. Subsequently, against the background of a relaxation of the monetary police by the central bank, a tendency of constant cut of the interest rate outlined.

According to BNM’s data, in January 2019, banks provided loans in the national currency worth 1.457 billion lei, - by about 400 million lei more against the first month of 2018. More than 93 per cent of the loans were provided for a period longer than 12 months, at an interest rate of 8.31 per cent annually.  

Private people borrowed credits in Moldovan lei at an average rate of 7.74 per cent and the average interest rate on the loans for real estate was of 6.27 per cent. Banking statistics shows that, in last January, residents borrowed credits for real estate amounting to 162.45 million lei, against 99.57 million on the same period of the last year.

The average rate of interest on the new loans provided in hard currency on the concerned period was of 4.36 per cent. Against a background of cheapening of the loans in Moldovan lei, economic agents and residents in January 2019 borrowed loans in hard currency in an equivalent sum of 662 million lei, against 1.457 billion lei in the national currency.