Romanian banks’ loans to non-residents, up 39% YoY to EUR 22.6 bln

The volume of loans extended by Romanian banks to non-residents (mostly parent groups) increased by 39% YoY to RON 111 bln (EUR 22.6 bln, 10% of country’s GDP) at the end of October, nearly three times faster than the loans extended to the local non-Government sector that advanced by +13.5% YoY.

At the same time, the volume of such loans extended abroad accounts for only one-third of the (RON 316 bln, or EUR 64.2 bln) stock of local non-Government loans at the end of October.

The stock of loans to households rose by 9.4% YoY to RON 163 bln, and the loans to companies surged by 17.3% YoY to RON 143 bln.

In net terms, the net loans to non-residents (gross loans net of deposits) are visibly rising, being financed by the net positive balances held by Romanian households and companies in the Romanian banks (gross deposits net of loans).

As of the end of October, Romanian households held a positive net balance (deposits minus loans) of RON 114 bln (+13.4% YoY), or some EUR 23.2 bln, against local banks, while the Romanian companies held a net balance of RON 17.4 bln (+11.8% YoY) or EUR 3.5 bln.

The government’s net position was RON 43.9 bln (EUR 8.9 bln), but it does not include the stock of Government papers in the banks’ portfolio.

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