The decision of the National Bank’s Administration Board by which the base rate on bank loans is decreased from 4.5% to 3.5% comes into force today, April 29. The base rate on loans granted for a period longer than five years was reduced from 5% to 4%, IPN reports.

By diminishing the base rate on bank loans, the central bank aims to stimulate the process of lending to the economy, which declined last year and during the first three months of this year.

The volume of loans in March was by 16% or 300 million lei lower than in the same period last year. The interest rate was 12.77% on average, by 1.28% lower. The volume of loans in lei released by banks for a period longer than one year is increasing.