All newspapers on Wednesday read about the effects of the economic disturbances that Romanian citizens need to bear as banks increase credit rates.Elsewhere in the news, President Basescu witnesses a personality cult show off during his official visit to Syria.
Romanian banks increase rates for credits in Romanian Ron, even if Romania's Central Bank Governor Mugur Isarescu declares that the banking market is stable, Cotidianul informs. Not only future clients of the Romanian banks will pay higher rates for their national currency credits, but also those who already have a loan in the bank.
Rates will increase at least in BCR, Piraeus Bank and Bancpost's cases. BCR decided to add between 1.05 to 1.25% to the rates it already has for individuals. However, for Piraeus Bank, things are slightly different: bank officials decided to modify the ROBOR, the average rate for credits, from 12.28% to 15.97%. Piraeus officials declared that the bank modifies ROBOR every three months, and thus, clients are protected.
Some of Bancpost's clients were notified that the bank increased their rates and commissions. Officials of the institutions only declared that the credit contract is perfectly legal. One of the newspaper's readers informed that his rate increase by 3% and the administration commission by 0.2%.
Both BRD and Transilvania banks increased their rates for credits in Romanian Ron. BRD increased the rate for the Expresso credit by 0.25%, on average.
In the same vein, Evenimentul Zilei reads about a 20% increase in rates due to external financial causes. The newspaper reads that even though authorities attempt to assure the population that the Romanian banking system is healthy, banks increase rates for credits in the national currency.
In an official notification from Bancpost, a credit owner from Prahova is notified that his rate increased by 20% due to "significant changes registered on the international financial market with important effects on financing costs".
The notification adds that the bank is compelled to adjust the credit portfolio and the annual rate will amount to 19% while the administration commission will amount to 0.59% and thus the final monthly rate will be 468.12 Ron instead of 380 Ron.
At its turn, the bank defends by arguing that the contract signed stipulates that it has every right to raise the rates during the credit period.
Gandul reads that finally what counts is that, even after the financial crisis is over, rates will not decrease and citizens will be in the position of continuing their credits at high rates. Moreover, the paper informs that the increase in rates is influenced mainly by the decision of the bank to increase the risk margin.
What consumers could do, is to submit a complaint at the Consumer's Protection Office that can investigate each case in detail. Thus, if a bank breached the conditions of the contract the Consumer's Protection Office will fine the bank and compel it to compensate the client.
However, if no irregularity is discovered, the evaluators report their findings and send the case to Court.
Last but not least, Cotidianul informs that Romania's President Traian Basescu witnesses a personality cult show off, during his official visit to Syria to meet his counterpart, Hafez Al Assad.
Syria's president was installed President after the death of his father, Bashar al Assad, friend of former Romanian Communist leader Nicolae Ceausescu.