“Loan restructuring schemes were not enough to improve debt reimbursement and around 60% of the household loans overdue by more than 90 days in the third quarter of 2009 were relatively in the same situation after a period of twelve months,” BNR said in its latest financial stability report.
The recovery rate for non-performing loans provided to small- and medium-sized enterprises improved by less than 10% in the first nine months of 2010 compared with the year-earlier period, the report noted.
The percentage of overdue household loans increased to 49% of overall lending in the first nine months of 2010, from 37% in September 2009, while overdue corporate loans were unchanged at 54%, the data showed.
“These developments suggest the banks should improve their risk management techniques, particularly client solvency assessment in case of unfavorable economic conditions,” the central bank said.
It said household indebtedness has slowed down in 2010 and in the first half of 2011, but is still at a level that requires close monitoring.
The reduced indebtedness was due to harsher lending conditions imposed by the banks, as well as to the weaker demand, the report noted.
According to central bank data, around 4.2 million people, or 43% of Romania’s economically active population, had loans in June 2011. The numbers were lower by six percentage points compared with December 2009.
“Increasing financial awareness among the population is vital to better manage the indebtedness level,” the central bank said.