Overdue bank loans in Romania down 8.7% at end-June

The volume of overdue loans decreased by 8.7% at the end of June compared to the same moment last year, to RON 6.77 billion (nearly EUR 1.4 bln).

The figures regard the stock of loans with overdue payments of more than one day.

The bank loan payment moratorium, allowing debtors to defer their payments, has visibly helped the credit quality figures recently.

The EBA non-performing loans ratio went down to 4.01% at the end of May compared to 4.13% at the end of January and 4.80% in May 2019.

The ratio of overdue bank loans to total loans decreased to 2.5% at the end of June this year from 2.8% one year earlier. The improvement was driven by the decline in overdue loans and the 4.5% rise in the volume of total loans.

Notably, the ratio was as low as 2.2% for foreign-denominated loans, for which the overdue loans contracted by 24% year-on-year to the equivalent of RON 2 bln (EUR 0.4 bln).

The payment discipline is weaker for local currency-denominated loans (which includes consumer loans), but the ratio is no bigger than 2.6% for this segment either.

(Photo: Pixabay)