ECONOMY FINANCE&BANKING

BNR sets to decrease bad loans to 6pct, from current 9-10pct

The National Bank of Romania (BNR) has set to decrease the rate of bad loans in 2017 to 6 percent from a current 9-10 percent, BNR Vice-Governor Liviu Voinea told the release on Wednesday of a 2017 economic report on Romania.

“Bad loans continued to fall. The target for bad loans this year is set at 6 percent, which means reaching the European average. On the other hand, Romania is ahead the European average in terms of provisions covering the bad loans. As far as Romania’s budget is concerned, no public money should be used to bail out the banking system since 2009,” added Voinea.

He went on to say that there is low inflation in Romania, not deflation, while interest rates are at their historic low.

“Legislative uncertainty has reduced, with the National Bank having contributed toward that. Banks continued to purge their balance sheets of bad loans, they are well capitalised and contagion risk is receding, while we have rising net international reserves,” said Voinea.

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