The stock of bank loans in Romania rose by some RON 3 billion (EUR 0.6 bln) in September to RON 277.5 bln (EUR 57.0 bln).

The 1.1% monthly increase in September, after a 0.9% advance in August, confirms the gradual recovery after the 0.4-0.5% monthly contraction in the stock of bank loans in April-May, Profit.ro reported.

The annual increase in the stock of loans accelerated to 4.0% year-on-year in September from 3.7% in August.

Corporate lending, key for the economic recovery, is gaining some ground - yet at a rate much slower compared to the magnitude of the Government-backed IMM Invest program. Thus, the stock of corporate loans rose by RON 1.83 bln or 1.5% in September, compared to August, to RON 120.6 bln (EUR 24.8 bln).

The local currency-denominated corporate loan stock increased by RON 1.25 bln or 1.8% month-on-month. This is less than one-tenth of the RON 14 bln loans guaranteed by the Government under the IMM Invest program.

The program's impact is likely to increase in October-November. Still, the gloomy outlook generated by the sanitary situation is expected to prevent extensive use of the guarantees made available by the Government.

(Photo: George Oprea/ Dreamstime)

andrei@romania-insider.com