Romania's central bank has moved to ease restrictions on mortgage lending after research showed it is less risky than other forms of lending.

National Bank of Romania (NBR) introduced mortgage restrictions last year in a bid to avoid the kind of borrowing-related problems seen in other countries, such as the US.

It was thought the risk management regulations relating to residential property loans would help to stabilise the country's economy but, against a backdrop of falling inflation, the body has now decided they are no longer necessary.

The central bank's board explained in a statement that it had analysed default figures and discovered that mortgages are less risky than unsecured consumer loans.

As a result, NBR has decided to differentiate between mortgage and unsecured lending, meaning that "lenders would have the possibility to calculate a higher indebtedness level for the borrowers that would have high-quality real estate assets as collateral for their credits".

Although the decision appears to be good news for overseas investors considering buying Romanian property, it is not yet clear whether the country's commercial banks will be able to raise the funds needed to increase mortgage lending.