The interest rates on bank loans will continue to decline, the National Bank of Moldova (BNM) anticipates in an inflation report presented on May 2. Governor Dorin Dragutanu said that this can happen also because of the diminution by the BNM of the base rate by 1%, from 4.5% to 3.5%, at the end of April, IPN reports.
According to Dragutanu, the monetary policy decisions cannot have immediate effects. A period of about nine months is needed. “In the last auction to place state shares, the average interest rate fell by 0.5%,” he stated.
The governor believes the commercial banks will understand that they must review the lending policy and increase the volume of loans at least up to last year’s level. “Currently, the demand on the market is weak and the banks should actively lend to the population and companies so as to stimulate it,” he said.
