Romanian banks extended loans totaling RON 84 billion (EUR 17.5 bln) to the non-government sector in 2020, slightly more than in 2019, according to an analysis compiled by dreptullabanking.ro.

The loans denominated in local currency accounted for 81.7% of the total, the loans denominated in euro accounted for 15%, and the rest of the loans were denominated in US dollars.

Thus, almost a third of the non-government credit portfolio outstanding at the end of 2020 was formed by new loans contracted during last year.

This situation is explained by the short maturity of some loans (under one year), particularly in the corporate sector.

Lending was boosted by the companies segment, with a share of 57.7% in total new loans granted in 2020. Individuals contracted new loans amounting to RON 35.45 bln (EUR 7.4 bln), 42.3% of the total new loans.

The distribution by currencies shows that the population contracted virtually only loans denominated in local currency (98.4%), which diminishes exposure to foreign exchange risk.

The companies contracted loans worth RON 48.45 bln (EUR 10.0 bln), the lending activity being supported by the guarantees extended by the Government.

The companies mainly contracted new loans in local currency (70%), but the foreign currency loans still accounted for some 30%.  

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andrei@romania-insider.com