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June 18, 2021

BNR Deputy Governor Liviu Voinea: Stock of RON-denominated loans becomes of majority, forex risk lowered

RON-denominated loans have become of majority within the total stock of loans offered in Romania, this being one of the structural economic changes that point to a drop in forex risk (the risk related to the exchange rate – editor’s note), National Bank of Romania (BNR) Deputy Governor Liviu Voinea stated on Wednesday at the Euromoney CEE Forum 2016 in Vienna.

“The forex risk diminished last year through two structural changes in the Romanian economy. One has to do with the crediting activity. Now, within the total stock of loans, RON-denominated loans are of majority. In a single year, the forex-denominated loans stock dropped from 58 to 49 per cent. As a flow, RON-denominated loans registered two-digit growth, and forex-denominated loans registered two-digit slump,” Liviu Voinea pointed out.

The other structural change that diminished the forex risk in the Romanian economy consisted of the financing of the banks operating on the local market, the BNR official pointed out. Foreign financing from parent banks dropped, but was compensated by the growth in local deposits.

According to the BNR Deputy Governor, the Central Bank’s data shows that the real interest rate for deposits was “slightly positive, but positive nonetheless,” and “has been like that in recent years.”

Moreover, the BNR official emphasized, individual customers were the banking sector’s net creditors, with RON 26 bln (net), which shows appetite for bank deposits.
Liviu Voinea also emphasized that a significant drop in non-performing loans was registered last year and the drop in the dependence on external financing lowers the contagion risk at the level of financial markets.

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