The volume of new local currency loans extended by Romanian banks (including refinancing loans) increased by 48.0% y/y to RON29.6bn (some EUR 6bn) in Q1, according to data published by the National Bank of Romania. Most of it was retail lending.

The new loans extended to households (retail lending) surged by 83.5% y/y to RON20.8bn, and their share reached 70% of total new loans extended in local currency by the Romanian banks, up from 57% in Q1, 2023. 

"If the lending to households for consumption and housing purchased is so high and the corporate lending lags so much behind, you end up in a situation where the real economy fails to contribute to economic growth and, ultimately, in the long term, fails to provide jobs of work and competitive salaries," commented ASF vice-president, board of directors of CFA Romania Andreea Nica for Ziarul Financiar.

The retail loans were roughly equally shared between mortgage (RON10.7bn, +107% y/y) and consumer (RON9.9bn, +66% y/y) loans in Q1 this year.

Of the EUR 1.15bn (RON5.7bn) new loans extended by banks in Q1 this year, only 2.2% were retail loans.

(Photo: Kittichai Boonpong/ Dreamstime)

iulian@romania-insider.com