Study: Romanians avoided forex borrowing after 2016

Only 2% of the bank loans contracted by Romanian households in 2016-2020 were denominated in a foreign currency while the vast majority (98%) were denominated in local currency, according to calculations compiled by the #DreptulLaBanking, an association of the Romanian banks aimed at providing financial education and information.

Overall, including the corporate lending, 20% of the new loans extended over the period were denominated in foreign currency.

Loans denominated in euros were mainly contracted by companies (95.24%), while the new loans in dollars were extended almost entirely by companies (98.7%), Agerpres reported.

In 2016-2020, the Romanian banks extended new loans to the population and companies worth RON 388 bln (some EUR 86 bln), 37.5% more than the stock of non-government loans at the end of last year (RON 282 bln). Thus, in the five years, the new loan portfolio exceeded the balance of non-government credit by more than a third (this is explained by the short-term, consumer loans paid back quickly).

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