Banks in Romania see monthly drop in corporate and household loans in June

The balance of corporate and household loans dropped by 0.1% in June compared to the previous month, reaching EUR 49 billion. Compared to June 2015, the non-government loan balance went up by 1.2%, the lowest growth rate in more than six months, according to Romania’s National Bank (BNR). Local banks have slowed down lending after the new law on mortgage loans entered into force in May, changing the rules of the game on the most dynamic business segment for local banks in recent years. The corporate and household loans in local currency lei increased 16.2% year-on-year whereas the loans in foreign currency dropped by 12.5%. Compared to May, the total loans in local currency went up by 1.2% while those in foreign currencies declined by 1.7%. The government credit saw an increase of 0.1% in June compared to the previous month reaching EUR 20.4 billion. Compared to June last year, the government credit rose by 3.7%. When does Romania’s new giving in payment law become effective? editor@romania-insider.com