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Banks increase price of credits under pressure of inflation


https://www.ipn.md/en/banks-increase-price-of-credits-under-pressure-of-inflation-7966_961371.html

The rising inflationist pressures determined commercial banks to substantially increase the crediting sources in MDL – averagely by 0.68 percentage points, and some categories of credits – by over 2 percentage points. This is the most important increase of credits’ interest rate this year. According to the National Bank of Moldova, the credits in MDL have increased in price in February, when the medium rate in the banking system reached 18.3% annually, compared with 17.93 in January. In rest, the interest of the credits in national currency did not record any devolution. On credit categories, the highest increase of interest, in August, was registered for up to one month credits – by 2.24 percentage points, up to 22.75% annually. After the very short term credits, the following are the over one year credits - the rate of the interest went up by 0.78 percentage points and constitutes 16.98%. The interest for one month to three month credits is 17.51%, by 0.52 percentage points higher, from 3 to 6 months – 18.54%, by 0.6 percentage points and from 6 to 12 months – 17.52%, by 0.37 percentage points more. Independent experts say that until the end of this year, the medium rate of the credit interests in the banking system could increase by 2-3 percentage points. They believe that in short time the National Bank could revise the basic interest rate – 12.5% at present – in order to stop the rhythms of the inflation, which, after 8 months reached 7.9%, and compared with August 2005 amounts to 14.5%. The increase of the basic interest rate will be one more argument for banks to rise the price of credits. In August, commercial banks offered credits in national currency totaling to MDL 782 mln and in foreign currency – MDL 675 mln. The medium rate of the interest in foreign currency in August, which is relatively stable, constituted 10.95% annually.