Loan instalments have become an increasingly heavy burden for clients with secured loans, with individual loans more than 30 days overdue amounting to 3.99 billion RON (892 million euros), 40% more than at the end of last year, according to data of the NBR (National Bank of Romania).
The average overdue amount on RON-denominated loans climbed in the same period from 2,800 RON to over 3,700 RON, while overdue euro-denominated amounts rose three times faster than RON-denominated ones, which indicates worsening problems for higher-value loans, which are usually secured loans. 95% of mortgage loans for instance are granted in foreign currency.
Analysts, however, say that clients with secured loans do not put a lot of pressure on banks' portfolios because clients have a more solid financial profile and are doing their best to pay their debts because they have more to lose than a client with a small-value consumer loan. Although they rose faster, overdue amounts on euro-denominated loans are 40% lower than on RON-denominated loans.
The number of individuals with overdue loans rose in April by almost 33,000, to 710,400 debtors, after their number had seen a slight decline the first three months of the year.
Loan instalments have become an increasingly heavy burden for clients with secured loans, with individual loans more than 30 days overdue amounting to 3.99 billion RON (892 million euros), 40% more than at the end of last year, according to data of the NBR (National Bank of Romania).
The average overdue amount on RON-denominated loans climbed in the same period from 2,800 RON to over 3,700 RON, while overdue euro-denominated amounts rose three times faster than RON-denominated ones, which indicates worsening problems for higher-value loans, which are usually secured loans. 95% of mortgage loans for instance are granted in foreign currency. @