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The issue of interest rates on foreign currency loans. A case study

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  • Mariana Rodica Tirlea

    ()

  • Rodica Perciun

Abstract

The legal framework for establishing the interest for bank loans represents the bank lending contracts under which there are mentioned the contracting parties, the loan value, credit price, the rates term of payment of the contracted loan. The price of short-term bank loans and long term is represented by interest, taxes and bank fees. The amount of interest and bank charges is directly proportional to the risk of the relevant customer respectively the borrower, the size of the bank credit, the interest rates and the maturity term of bank credit. The calculation manner of interest, fees and bank charges needs to be clarified by the banking credit agreement. Practice has proven that through amendments to banking contracts or even unilaterally, the bank adjusts the interest or bank charges, fact which leads to unfair terms in contracts bank lending.

Suggested Citation

  • Mariana Rodica Tirlea & Rodica Perciun, 2015. "The issue of interest rates on foreign currency loans. A case study," Knowledge Horizons - Economics, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 7(4), pages 72-74, December.
  • Handle: RePEc:khe:journl:v:7:y:2015:i:4:p:72-74
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    More about this item

    Keywords

    Client; loan amount; interest rate; reference rate; daily interest rate;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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