Private lending in Romania accelerated slightly to a 5.3% year-on-year annual growth in February when the stock of bank loans reached RON 285 billion (EUR 58.5 bln). In January, the growth rate was 5.1%.

In real terms, the stock of loans rose by 2.1% yoy in February, Ziarul Financiar reported.

For comparison, the stock of bank deposits grew by 16.4% yoy (+12.8% yoy in real terms) to RON 428 bln (EUR 87.9 bln) at the end of February.

The de-euroization process continued as the loans denominated in local currency rose faster than the average.

At the end of February, the local currency loans were 9.9% higher than one year ago, while those denominated in foreign currency were 3.9% lower (when expressed in local currency), according to data published by Romania's National Bank (BNR). However, the bank loans expressed in foreign currency still accounted for 30% of total bank loans at the end of February.

The stock of bank deposits denominated in foreign currency was around 35%. Out of the total volume of loans denominated in foreign currency, some 60% are retail (household) loans and only 40% corporate loans - that are often matched with debtors' forex revenues (which is less common for households' revenues).

The Government credit soared by 35.5% year-on-year as of the end of February, to RON 155 bln (EUR 31.8 bln, 14.5% of GDP). It includes the credit granted to public administrations (central administration, local administrations, social security system administrations) totaling RON 11 bln and debt securities issued by these institutional sectors and held by local banks worth RON 144 bln.

andrei@romania-insider.com

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