The high non-performing loan ratio in Romania is triggered by over-indebtedness and the significant share of loans in foreign currency, Negritoiu said.
ING’s NPL ratio in Romania is lower than the local average and stands below 10%, he added.
Negritoiu expects lending might even decrease in Romania in the next year, but banks will increase income as provisions will be lower.
With a highly indebted economy, now is not the right time for lending, Negritoiu highlighted.
Private sector companies use half of their revenues to pay back loans, he added.