The number of Romanians unable to pay their credit instalments on time has risen from one month to the next lately, with the ratio of overdue loans exceeding 6% in many counties, and approaching 10% in Bistrita-Nasaud.
Overdue amounts in Bistrita county stood at over 203 million RON (around 50 million euros) at the end of March, accounting for 9.4% of all credits granted. In Suceava, the ratio of overdue loans was close to 8% in March, compared with a 5.2% average across Romania.
Analysts say unemployment is one of the key factors that led to a deeper deterioration of banks' credit portfolios in certain parts of the country. For instance, in Bistrita, the unemployment rate exceeds 8.6%, while in Suceava it amounts to 8.3%, compared with an average of just over 8%. In Arges and Ialomita, which feature in the top five in terms of the ratio of overdue payments, the unemployment rate is 9.4% and 12.2% respectively. Radu Ghetea, chairman of CEC Bank and of the Romanian Banking Association, said recently that the high ratio of overdue payments could also be explained by the shallow approach of the local management to loan applications. Ghetea says CEC's entire management team was replaced in Bistrita.
The number of Romanians unable to pay their credit instalments on time has risen from one month to the next lately, with the ratio of overdue loans exceeding 6% in many counties, and approaching 10% in Bistrita-Nasaud.
Overdue amounts in Bistrita county stood at over 203 million RON (around 50 million euros) at the end of March, accounting for 9.4% of all credits granted. In Suceava, the ratio of overdue loans was close to 8% in March, compared with a 5.2% average across Romania.
Analysts say unemployment is one of the key factors that led to a deeper deterioration of banks' credit portfolios in certain parts of the country. For instance, in Bist
