Lending gains momentum in Romania to +6.8% y/y at end-July
<p>The stock of bank loans in Romania increased by 6.8% y/y to RON 404.0 billion (EUR 81.3 bln) at the end of July, accelerating slightly from +6.7% y/y at the end of June and +6.4% y/y at the end of 2023.</p>

<p>Speaking strictly of the loans denominated in local currency, it seems retail lending is gaining ground faster, but the foreign currency corporate lending compensates for part of the discrepancy.</p>

<p>The still significant inflation (+5.4% y/y in July) erodes the nominal rise in the stock of bank loans to a slim 1.4% real annual advance – a significant improvement from the negative annual growth rates in 2023.</p>

<p>The banks were more active in extending loans denominated in local currency, with the stock of loans denominated in lei (RON) rising by 8.8% y/y at the end of July (+2.6% y/y for the loans denominated in foreign currency expressed in RON) to RON 280.6 bln (69% of the total stock of loans).</p>

<p>Of the local denominate loans, the loans extended to households (59% of the local currency loans) boasted a stronger growth rate: +10.6% compared to only +6.3% y/y advance for the stock of corporate loans denominated in local currency. The discrepancy has widened from June, when the growth rates were +9.6% y/y and +7.3% y/y, respectively.&nbsp;</p>

<p>Indeed, when it comes to foreign currency loans, corporate lending is far more active (+77.2% y/y to RON 104 bln), while retail lending is being phased out (-17.2% y/y to RON 19 bln).</p>

<p><em>iulian@romania-insider.com</em></p>

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