Head of BRD's financial markets: The interest rate rise for euro-denominated loans is not beyond control

The risk of an increase in reference rates for loans in euros - EURIBOR - is not something beyond the control of corporate customers because they have at their disposal instruments they can use to "block" certain interest rate and exchange rate levels for various periods of time, says Marius Stoica, executive manager of financial markets at BRD-SocGen, the second largest bank on the Romanian market.

Even though the European Central Bank is not likely to start to increase its key interest rate before the end of 2012, when it does, the impact will be long-term.
"Neither the interest rate increase, nor the adverse exchange rate movements are beyond control, they can be managed. The level of customer sophistication is a constant problem, but I think the painful experiences that various companies have been through over the last few years contribute to their awareness of the need to cover risks. Considering the prospects of resuming the growth cycle for the euro interest rate at a certain point, we recommend to our customers to look carefully into ways to freeze their long-term loan interest rates via hedging."