The stock of loans granted by banks to companies and households in Romania was 4.1% higher at the end of October than in the same period last year (up 1.8% in real terms), namely RON 279.1 billion (EUR 57.3 bln).

The annual growth accelerated marginally from 4.0% yoy in September, but the monthly increase (+0.6%) was the weakest since June - which might point to a certain deterioration in the banking market's status.

However, the slowdown is the effect of the downturn in retail lending (predominant until recently) while the corporate lending gains momentum - though not at the pace anticipated based on the loan volumes announced under the IMM Invest program (RON 15 billion, EUR 3 bln).

At the end of October, the stock of loans in local currency was 7.4% higher year-on-year, while the loans in foreign currency contracted by 2.7%, the central bank's data show, Ziarul Financiar reported. The stock of bank loans contracted in April and May by a combined 1.2% compared to the end of March, but it has gradually increased since June.

The dynamics of the mortgage and corporate loans (denominated in local currency) are contrasting and opposite to their pre-crisis patterns: thus, the corporate loan portfolio rose by 2.1% in October (versus September), while the retail (household) loans advanced by 0.7%.

The stock of corporate loans denominated in local currency rose by only RON 1.5 bln (EUR 300 mln) in October, and the bulk of the IMM Invest loans is still to come.

iulian@romania-insider.com

(Photo source: Inquam Photos/Octav Ganea)