Bad debt down in Romania at end - 2011

More Romanians managed to keep up with loan repayments in December than the month before. Overdue loan payments in Romania were down 2.1 percent on the previous month in December 2011. Overdue payments amounted to EUR 4.6 billion in December last year, representing 7.7 percent of the total volume of loans, according to data from the Romanian Central Bank (BNR). At the end of 2010, the weighting of overdue loans was of 6.3 percent. The total value of loans in Romania stood at EUR 68 billion at the end of last year. The data on overdue loans refer to payers with a debt to a single bank, of at least RON 20,000.

BNR made a further reduction of the key interest rate to 5.5 percent during its most recent monetary policy meeting at the beginning of February, after cutting the rate from 6 to 5.75 percent at the beginning of January. The BNR decided to maintain the existing levels of minimum reserve requirement ratios on both leu-denominated and foreign currency-denominated liabilities of credit institutions. editor@romania-insider.com (photo source: Sxc.hu)