The volume of new corporate loans denominated in the local currency surged to RON 3.9 billion (EUR 800 mln) in October, 50% more compared to the same month in 2019, according to data released by Romania's National Bank (BNR).

The rise in October, attributable to the disbursements under the IMM Invest Government-backed lending program, comes after sluggish corporate lending in the first months after the lockdown: corporate lending contracted by 15.6% year-on-year in Q2, to RON 5.9 bln.

As the IMM Invest program started generating results during the late summer months, the corporate lending gained momentum, and the volume of new corporate loans in March-September (the first five months of crisis) was already 0.8% larger compared to the same period of 2019 (yet lower in real terms).

"Since the beginning of the pandemic, the Romanian banking system has acted as a shock absorber of the health crisis, by absorbing the customers' liquidity problems, and has continued to finance the Romanian population, companies, and state," says the Romanian Banking Association (ARB).

The volume of new loans extended to households contracted by 15% year-on-year to RON 22.7 bln in January-October compared to the same period last year.

However, the new loan figures do not reflect the loans de facto deferred until the end of 2020, which are equivalent to new lending, including when it comes to financing requirements posed to the banks accepting to defer repayment.

(Photo: Tinnaporn Sathapornnanot/ Dreamstime)

iulian@romania-insider.com