Overdue payments on Romanian bank loans up by 71% y/y as at end-Q1.

By bne IntelliNews April 29, 2011
The stock of overdue payments on Romanian bank loans increased by 71% y/y to RON 17.8bn, or by 70% y/y to EUR 4.32bn when expressed in euros, central bank data showed. The rise in overdue payments decelerated from 107% y/y as at end-2010 or 104% y/y in terms of euro. However, their share in the total stock of bank loans increased by 1pps in the quarter, or by 3.5pps y/y to 8.7% at the end of March. The payment discipline has deteriorated above the 2010 average on the forex credit segment, as the stock of forex overdue payments increased by 84% y/y and its share from the total forex loans has advanced by 3.2pps to 7.4%. Even in absolute value, the forex overdue payments have already exceeded those in RON as at end-March. The current strengthening of the local currency should ease the pressure on debtors with forex loans, but due to the long maturity of these loans, the currency mismatch still generates significant risks.
Overdue payments (eop)
Q1 10 Q2 10 Q3 10 Q4 10 Q1-11 y/y
Total, EUR mn 2,539 3,121 3,671 3,771 4,324 70%
Local currency 1,280 1,477 1,712 1,774 2,002 56%
Foreign currency 1,259 1,644 1,959 1,997 2,322 84%
Total, % of stock of loans 5.2% 6.4% 7.5% 7.7% 8.7% n.a.
Local currency 6.6% 8.2% 9.4% 9.8% 10.7% n.a.
Foreign currency 4.2% 5.4% 6.4% 6.4% 7.4% n.a.
Source: BNR, IntelliNews calculations

Overdue payments on Romanian bank loans up by 71% y/y as at end-Q1.

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