Bad loans reach 2.5-year low in Romania

The volume of nonperforming loans decreased by 21.3% in November 2014 compared to the same month last year, to EUR 5.98 billion, and by 0.5% compared to October this year. Bad loans thus reached a minimum level for the last two and a half years, after it has dropped for seven consecutive months, according to the National Bank of Romania (BNR). In October, the overdue loans amounted to EUR 6.02 billion, and in November last year to EUR 7.6 billion. The level of bad loans gradually decreased for seven months consecutively November included, by a 0.5% monthly rate, while the default rate reached 12.4%. The total volume of non-governmental loans was of some EUR 48 billion, at the end of November 2014, down by 2.7% compared to November 2013. Diana Mesesan, diana@romania-insider.com