Loans and deposits go down in August over July but are up year-on-year in Romania

Lending slowed down during August in Romania compared to July, but were up year-on-year, while deposits were on an increasing trend compared to August 2011, the latest figures from Romania's Central Bank (BNR) show.

Non-government loans were down 1.6 percent in August this year against the previous month. Measured against August 2011, non-government loans were up by 5.7 percent. Non-government deposits showed a similar pattern: 0.5 percent lower in August compared to July 2012 but 8.8 percent higher than in August 2011. Loans totaled just under EUR 50.5 billion, while deposits reached nearly EUR 43 billion. Local currency denominated household loans rose slightly in August compared to July this year, up by 0.6 percent, however the RON 34.5 billion total (just under EUR 7.7 billion) was 2.9 percent lower than in August 2011. Foreign currency denominated household loans, totaling around EUR 15.7 billion, were down 2.5 percent on July 2012 but up 6.3 percent on August 2011. The approximately EUR 10.9 billion in local currency denominated corporate loans registered in August this year represented a 0.2 percent increase on the previous month and a 10.2 percent rise compared to the same month last year. The approximately EUR 16.2 billion in foreign currency denominated corporate loans registered in August 2012 was 2.8 percent lower than in July this year, but 6.6 percent higher than in August 2011. Local currency denominated household deposits in August 2012 totaled around EUR 16.6 billion, while foreign currency denominated deposits reached some EUR 9.9 billion. Both showed falls on the previous month of this year and over 10 percent gains on August 2011. Corporate deposits reached around EUR 11.3 billion in local currency, while foreign currency denominated deposits totaled just over EUR 5.1 billion. Local currency denominated deposits were down slightly on the previous month and up by 2.8 percent on August 2011. Foreign currency denominated corporate deposits were up 1.7 percent on the previous month and by 11.5 percent on August 2011. Liam Lever, liam@romania-insider.com (photo source: sxc.hu)