The loan portfolios of leasing and consumer finance companies dropped by over 3bn RON (around 720m euros) this year, to 31,5bn RON in late October, considering new loans did not keep up with repayments, NBR data reveal.
Consumer loan sales have plummeted over the past two years amid clients' reluctance to take out loans, and in parallel the value of new funding released by leasing companies has declined four times in the past two years from the 4bn-euro peak reached in 2007.
In the first nine months of 2010, the value of funding released by leasing companies came in at 780 euros, down 27% from a year ago, according to the data provided by the Association of Financial Companies (ALB).
Moreover, leasing firms repossessed tens of cars and equipment from bad payers, meaning the respective contracts were closed and are no longer included in statistical data.
Companies are the main clients of non-bank financial institutions (NBFI), with the value of funding granted to them topping 28bn RON in late October, accounting for 90% in the total portfolio.
The loan portfolios of leasing and consumer finance companies dropped by over 3bn RON (around 720m euros) this year, to 31,5bn RON in late October, considering new loans did not keep up with repayments, NBR data reveal.
Consumer loan sales have plummeted over the past two years amid clients' reluctance to take out loans, and in parallel the value of new funding released by leasing companies has declined four times in the past two years from the 4bn-euro peak reached in 2007.
In the first nine months of 2010, the value of funding released by leasing companies came in at 780 euros, down 27% from a year ago, according to the data provided by the Association of Financial Companies (ALB).
Moreover, leasing firms repossessed tens of cars and equipment from bad payer
