The star loan taken out by millions of Romanians has almost disappeared. Bad news for those still borrowing in euros

Euro-denominated personal loans have almost disappeared from Romanian banks’ offers, after being one of the main products fueling the lending boom between 2005 and 2009. According to the Conso.ro calculator, only one bank currently offers such a loan, at higher costs than those for loans in lei.

Data from the National Bank of Romania show the scale of the change. At the end of September, euro-denominated loans accounted for approximately 6% of total loans granted to individuals, compared with nearly 75% during the peak of foreign-currency lending. Restrictions imposed by the NBR and the depreciation of the leu have reduced interest in these products.

For Romanians who still have euro-denominated loans, the pressure could intensify. The exchange-rate increase, from less than 5 lei per euro a year ago to approximately 5.35 lei, is raising repayments expressed in lei. Forecasts indicate an exchange rate of 5.7 lei per euro at the end of 2027.

Currency risk could also be compounded by rising interest rates. ECB officials, including Chief Economist Philip Lane and Bundesbank President Joachim Nagel, have indicated that another increase may be necessary if inflation remains high. Rising energy costs and price pressures are complicating the decision, as higher interest rates could slow the eurozone economy.