In late June, the rate slid below 20%.
“Starting July, the outcome of the sale of certain loan portfolios will become visible, automatically leading to a decline in the non-performing loan ratio,” says Catalina Molnar, chief economist of UniCredit Tiriac Bank.
In recent years, loan portfolios have deteriorated rapidly, at a visibly faster pace than on other markets in the region, so that the weight of bad loans in overall credits has been continuously rising. Against 2007, when the ratio stood at 2.5%, the level has risen almost nine times, to over 22%.
For the time being, the new loans released by banks do not cover reimbursements. The Romanian central bank expects banks to increase lending once they get rid of NPLs.
(English version by Catalina Apostoiu)