The Romanian Central Bank (BNR) recommends banks to also take into account the client’s age when giving loans, because young people no longer pay their loans as fast as the old people. According to BNR, about 17 percent of the consumer loans without mortgage given to young people aged between 18 and 25 years were non-performing at the end of June. Moreover, for the customers over 65 years the rate of non-performing consumer loans without mortgage is down to about 3 percent. “The debtor's age could be a variable to be used in a higher proportion in the eligibility evaluation models to obtain a consumer credit without mortgage”, according to the stability report conducted by BNR.

At the end of June, 2011, only 51 percent of loans didn't recorded any day of delay, compared with 63 percent reported in the same period last year. The foreign currency loans have become riskier than the ones in RON in the past year, with the non-performing rate reaching 8.1 percent for foreign currency loans in June, compared to 7.7 percent for loans in RON.

Irina Popescu, irina.popescu@romania-insider.com

(photo source: Sxc.hu)