Mortgage crediting rose by over 34 percent in the first eight months of the year, but the rise was poorer than expected, with Romania remaining a market of consumer crediting, told on Friday Dorin Cojocaru, CEO of Retail Department of BCR, a housing conference occasioned by the Condominium flats fair.
"The market has risen lower than expected since the start of the year. Of course we have recorded an important growth of mortgage, of some 34 percent, in the first eight months, but we remain a country of consumer crediting," said the BCR official.
Cojocaru added that the growth pace of mortgage crediting stood at 7.4 percent in August, whereas the H1 growth average stood at 3.6 percent and 5.3 percent at the consumer crediting.
Cojocaru added that the growth pace of mortgage crediting stood at 7.4 percent in August, whereas the H1 growth average stood at 3.6 percent and 5.3 percent at the consumer crediting.
The retail lending rose by 47.3 percent in the first eight months of the year. The annual rise is expected to stand at more than 83 percent, much above the annual growth of mortgage lending – 52.2 percent.
"There are signs the market may recover by the end of the year is the monthly growth rate recorded in August is maintained," explained Cojocaru.
He added in Romania the mortgage lending stands around 35 percent of total lending, whereas consumer crediting holds the biggest share, an opposite tendency versus the western countries.
The growth recorded by the mortgage lending in the first eight months was triggered mainly by the rise in revenues due to the introduction of the flat tax.
In total, the mortgage lending represents 19 percent of total retail loans versus 21 percent in December 2006. The rest of 81 percent represents consumer loans.
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