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Iulian Ernst
Senior Editor

Iulian studied physics at the University of Bucharest, and he sees himself as a physicist in the broadest sense of the word. He also studied economics at Charles University in Prague and Central European University in Budapest, after a master’s program in business administration at Bucharest Academy of Economic Studies. Since recently, he’s been exploring coding and data analysis for business and economics. As a freelancer, he worked for nearly two decades as an analyst for ISI Emerging Markets, Euromonitor International, Business New Europe, but also as a consultant for OMV Petrom and UkrAgroConsult. Iulian was part of the founding team of Ziarul Financiar. At Romania Insider, which he joined in 2018, he is reviewing the latest economic developments for the premium bulletins and newsletters. He would gladly discuss topics such as macroeconomics, emerging markets, Prague, energy sector including renewable, Led Zeppelin, financial services, as well as tech start-ups and innovative technologies. Email him at iulian@romania-insider.com. 

 

Loan portfolio quality looks bright in Romania as repayment moratorium is extended

The total value of the Romanian households' and companies' overdue loans in the local currency amounted to RON 4.42 billion (EUR 910 mln), at the end of December 2020, down by 4.83% compared to the end of November and 3.4% lower compared to the end of 2019.

The overdue foreign currency loans decreased by 3.6% month-on-month while plunging by 22% year-on-year to the equivalent of RON 1.61 bln (EUR 330 mln), according to data from Romania's National Bank (BNR), Agerpres reported.

However, the debtors hit by the crisis received a 9-month loan repayment moratorium that they can still apply for, if they didn't already, by the end of March. This is a key element that kept under check the non-performing loan ratio.

The total loans in local currency reached RON 197.0 bln in December (+8.7% year-on-year), of which RON 74.0 bln were contracted by economic agents and RON 118.7 bln by the population. This puts the share of overdue loans to 2.2% of the total stock of loans at the end of December 2020, down from 2.5% one year earlier. The share dropped to 1.8% for the foreign currency loans, down from 2.4% one year earlier.

The figures are different from the non-performing loans (NPL) ratio as reported by banks, as the overdue loans are defined as the loans for which monthly installments are overdue more than one day at the end of the month.

iulian@romania-insider.com

(Photo source: Dreamstime.com)

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Profile picture for user iuliane
Iulian Ernst
Senior Editor

Iulian studied physics at the University of Bucharest, and he sees himself as a physicist in the broadest sense of the word. He also studied economics at Charles University in Prague and Central European University in Budapest, after a master’s program in business administration at Bucharest Academy of Economic Studies. Since recently, he’s been exploring coding and data analysis for business and economics. As a freelancer, he worked for nearly two decades as an analyst for ISI Emerging Markets, Euromonitor International, Business New Europe, but also as a consultant for OMV Petrom and UkrAgroConsult. Iulian was part of the founding team of Ziarul Financiar. At Romania Insider, which he joined in 2018, he is reviewing the latest economic developments for the premium bulletins and newsletters. He would gladly discuss topics such as macroeconomics, emerging markets, Prague, energy sector including renewable, Led Zeppelin, financial services, as well as tech start-ups and innovative technologies. Email him at iulian@romania-insider.com. 

 

Loan portfolio quality looks bright in Romania as repayment moratorium is extended

The total value of the Romanian households' and companies' overdue loans in the local currency amounted to RON 4.42 billion (EUR 910 mln), at the end of December 2020, down by 4.83% compared to the end of November and 3.4% lower compared to the end of 2019.

The overdue foreign currency loans decreased by 3.6% month-on-month while plunging by 22% year-on-year to the equivalent of RON 1.61 bln (EUR 330 mln), according to data from Romania's National Bank (BNR), Agerpres reported.

However, the debtors hit by the crisis received a 9-month loan repayment moratorium that they can still apply for, if they didn't already, by the end of March. This is a key element that kept under check the non-performing loan ratio.

The total loans in local currency reached RON 197.0 bln in December (+8.7% year-on-year), of which RON 74.0 bln were contracted by economic agents and RON 118.7 bln by the population. This puts the share of overdue loans to 2.2% of the total stock of loans at the end of December 2020, down from 2.5% one year earlier. The share dropped to 1.8% for the foreign currency loans, down from 2.4% one year earlier.

The figures are different from the non-performing loans (NPL) ratio as reported by banks, as the overdue loans are defined as the loans for which monthly installments are overdue more than one day at the end of the month.

iulian@romania-insider.com

(Photo source: Dreamstime.com)

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