BNR Won’t Limit Forex Mortgage, Real Estate Loans

05.05.2011 By Florentina Dragu

Romanian central bank will most likely refrain from measures to limit mortgage and real estate lending in foreign currency, because the local market is unable to provide adequate financing resources on the long-term, central bank Mugur Isarescu said Thursday.

"Given that those are fields financed exclusively from abroad, it wouldn't have been beneficial to eliminate one risk - the one pertaining to foreign currency fluctuations - by introducing the risk of mismatch," Isarescu told a news conference.

Last month, Isarescu told MEDIAFAX in an interview that the central bank considers a set of measures to discourage foreign currency borrowing among people who get their paychecks in lei.