State-guaranteed loans amount to 12.5% of private loans in Romania

The state-guaranteed loans reached 12.5% of the private credit in Romania, according to the Guarantee Fund. The total value of loans banks granted to the private sector was of some EUR 47.5 billion, at the end of 2014. The state guaranteed some EUR 5.92 billion of these, reports local Economica.net. The total state guarantees, which the state stands to lose if these loans turn bad, were some EUR 3.07 billion. The bulk of state guarantees goes to the First House lending program, which helps young people buy their first house on credit.The state guarantees for this program were of EUR 2.3 billion and the value of guaranteed loans was EUR 4.59 billion. The total housing loans in Romania stood at EUR 1.51 billion, at the end of December 2014. The program expansion and adding state guarantees to car purchases will further increase the share of state guarantees in lending. editor@romania-insider.com