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February 3, 2023

Crediting remains low, although new loans tend to grow

Lucian Croitoru, the Central Bank Governor’s advisor, believes that Romania is still in the post-crisis period in which crediting remains low, despite the fact that new loans have started to grow.
“The crediting has dropped significantly. It’s not a Romanian behavior. It’s a behavior we have noticed in all economies, be they emergent or developed economies. Every time there is a boom in an emergent economy a profound crisis follows. After the burst of such a bubble takes place for many years crediting remains very low despite the fact that production resumes,” Croitoru explained on Tuesday at a conference.
On November 6, National Bank of Romania Governor Mugur Isarescu talked about a clear expansion of RON-denominated loans, pointing out however that the financing of the real economy, of SMEs in particular, is not satisfying.
According to National Bank of Romania data, the balance of non-government loans offered by banking institutions dropped in September 2014 by 0.2 per cent (0.3 per cent in real terms) month-on-month, down to RON 213.069 bln.
“RON-denominated loans grew by 0.6 per cent (0.4 per cent in real terms), while the forex-denominated loans expressed in RON dropped by 0.8 per cent (expressed in EUR, the loans dropped by 0.8 per cent). On 30 September 2014 the non-government loans registered a drop of 4.5 per cent (5.9 per cent in real terms) year-on-year, on account of the 7.6 per cent growth of the RON-denominated component (5.9 per cent in real terms) and of the 12 per cent drop in the forex-denominated component expressed in RON (expressed in EUR the forex-denominated loans dropped by 11 per cent),” a BNR communiqué reads.

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