Lending to Romanian individuals and companies reduced growth pace in July to 55.8 percent year-on-year from 63.4 percent in June after banks granted fewer loans in foreign currencies pending new norms from the central bank.
- Publicitate -
The non-government credit reached 178.69 billion lei at the end of July, a slight 0.3 percent growth in nominal terms over June. In real terms, lending reduced 0.4 percent month-on-month.
Loans in foreign currencies shrank 1.5 percent in July to 96.7 billion lei after several months of sustained growth, prompting a slowdown of the general pace of lending, the central bank announced today. On the other hand, lei credits added 2.4 percent to 81.99 billion lei.
The July evolution of credits generated slight change of the rapport between leu and other currencies since loans in foreign currencies reduced to 54.12 percent of the whole lending at the end of July versus 55.08 percent in June. Lei loans accounted for 45.88 percent in July over 44.92 percent in June.
Lending in lei to individuals spurred 3.3 percent month-on-month and 36 percent year-on-year to 39.3 billion lei, while those to companies advanced only 1.6 percent over June and 42.7 percent over last year’s similar month to 42.7 billion lei.
Loans in foreign currencies to people fell 0.7 percent in July over June and tempered annual growth 105.2 percent to 48.52 billion lei. Foreign currency credits for companies lost 2.2 percent to June to 48.2 billion lei.
The government credit (including that of the central and local administrations and the social insurance systems) added 1.4 percent in July over June to 11.225 billion lei which is an annual advance of 38.9 percent, the central lender said.
At the end of last week a new set of rules was published in the country’s Official Gazette. The new lending norms require banks to carefully analyze the clients’ payback capacity taking into account a level of incomes seen as eligible by customers, which cannot exceed more than 20 percent the previous year’s level.
Banks in Romania will require individual tax records of clients before approving a credit and will establish a different maximum degree of indebtedness depending on criteria such as credit destination or currency.
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