In Romania, Greek-owned Banca Romaneasca on Monday offered its French creditors a temporary easing, which can cancel their Swiss franc loans for three months at a rate of about 0.8% lower than hitherto.
The bank decided that over the next three months
It would base itself on the Libor franc, which currently stands at -0.954 percent (in the negative range), until the new value of the franc’s global Goodbank interest rate is announced on the London market.
In Romania, 75,000 retail customers of six banks were in difficulty due to the unexpected appreciation of the Swiss franc. Most of the banks involved have offered their franchisees temporary relief to a greater or lesser extent.
Offered its franchisees a temporary reduction of the interest rate
So far, E-Money Bank Romania has offered its franchisees a temporary reduction of the interest rate on installments by 1.5 per cent, Volksbank’s Romanian franchisees can pay their installments for three months at last year’s exchange rate,
According to the Mediafax news agency, nearly one-third of the 75,000 franc-denominated credit has been signed with Bancpost, which has not announced any measures yet. 24 percent of franchisees borrowed from Volksbank, 20 percent from Pirate Bank, 11 percent from Raiffeisen, 7 percent from Banca Romaneasca and two percent from E-Money.
On Sunday, a demonstration was organized by the Romanian Francophone Federation in Bucharest, demanding that loans be cut down. In a petition, the protesters urged the adoption of legislation that would allow foreign currency creditors to downgrade their loans at up to 20 percent higher than the original rate, without changing interest rates and the APR.
Want to make any solution binding on the banks
However, the Romanian government has said earlier that it does not want to make any solution binding on the banks.
The National Bank of Romania (BNR) estimates that Romanian banks would experience a loss of nearly 4.3 billion lei (300 billion forints) if they swap their customers’ loans in Swiss francs at the exchange rate prevailing at the time of signing the loan agreement.
In Romania, barely 8.2 percent of the total retail loan portfolio – slightly more than Rs 100 billion – was raised in Swiss francs. More than half of the loans were taken out by Romanian bank customers in euros and around 40 percent in lei (MTI).