The stock of bank loans in Romania increased by 6.8% y/y to RON 404.0 billion (EUR 81.3 bln) at the end of July, accelerating slightly from +6.7% y/y at the end of June and +6.4% y/y at the end of 2023.

Speaking strictly of the loans denominated in local currency, it seems retail lending is gaining ground faster, but the foreign currency corporate lending compensates for part of the discrepancy.

The still significant inflation (+5.4% y/y in July) erodes the nominal rise in the stock of bank loans to a slim 1.4% real annual advance – a significant improvement from the negative annual growth rates in 2023.

The banks were more active in extending loans denominated in local currency, with the stock of loans denominated in lei (RON) rising by 8.8% y/y at the end of July (+2.6% y/y for the loans denominated in foreign currency expressed in RON) to RON 280.6 bln (69% of the total stock of loans).

Of the local denominate loans, the loans extended to households (59% of the local currency loans) boasted a stronger growth rate: +10.6% compared to only +6.3% y/y advance for the stock of corporate loans denominated in local currency. The discrepancy has widened from June, when the growth rates were +9.6% y/y and +7.3% y/y, respectively. 

Indeed, when it comes to foreign currency loans, corporate lending is far more active (+77.2% y/y to RON 104 bln), while retail lending is being phased out (-17.2% y/y to RON 19 bln).

iulian@romania-insider.com

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