Loans in national currency increase amid tightening of policy measures in Moldova

Chisinau, 20 March /MOLDPRES/ - The average interest rate on bank loans in Moldovan lei increased up to a rate of 11.94 per cent, the highest level in the last ten months. Commercial banks increased interests for loans in local currency amid tightening monetary policy by the National Bank of Moldova (BNM), which increased the base rate from 8.5 to 13.5 per cent in mid-February.
"It is a significant tightening of the monetary policy," said then BNM Governor Dorin Dragutanu, adding that BNM expected commercial banks to accelerate the increase of interest rates on deposits and loans in lei.
Interest rate for loans remains on an upward trend for the fourth consecutive month, after reaching a historical low of 9.81 per cent in November. The price hikes took place amid the threefold increase of the base rate from 4.5 per cent in December to 13.5 per cent, after its last change on 17 February.
"Tightening monetary policy aims both at anchoring inflation expectations, meaning keeping the inflation at the target level, and increasing exchange rates for the Moldovan leu”, said the governor.
BNM statistics show that both the prices for loans to economic agents, and financing for real estate and consumer loans offered by banks to private persons increased. On the other hand, the same growth trend can be observed in term deposits in Moldovan lei made by the population. The annual rate of interest on these deposits increased from an average of 7.62 per cent in November, when the first notable change was operated to the base rate, up to 10.62 per cent in February.
Rates on deposits and loans in foreign currency saw a reversed, decreasing trend in February, according to BNM.
(Reporter V. Berco, Editor L. Alcaza)