Romanias overdue bank loan payments up 34% y/y at end-November 2011.

By bne IntelliNews January 3, 2012
The stock of overdue bank loan payments in Romania increased by 33.9% y/y to RON 21.9bn (EUR 5bn) at the end of November, the central bank said in a statement. The overdue payments at the end of the month were equal to 9.7% of the total stock of bank loans, up from 7.8% a year earlier. The payment discipline further deteriorated in comparison with October, when this ratio was 9.6%.

Out of the total overdue amount, 56.6% were unpaid instalments of foreign currency loans -- against a 63.6% share held by the forex loans in total bank loans to non-government. Back in 2008, before the recession, the unpaid instalments on foreign currency denominated loans were only 27.9% of the total overdue payments (end-September 2008) and an insignificant 0.5% of the total forex loans. In the meantime, even though the payment discipline for forex loans is better than the average, the outstanding amount is still 8.6% of the total stock of loans.

Overdue payments (eop)
2008 2009 2010 Q3-11 Nov-11 y/y
Total, EUR mn 719 1,849 3,771 4,746 5,029 31.7%
Local currency 470 1,027 1,774 2,105 2,184 21.6%
Foreign currency 249 822 1,997 2,641 2,845 40.7%
Total, % of stock of loans 1.4% 3.9% 7.7% 9.2% 9.7% 1.9pps
Local currency 2.2% 5.4% 9.8% 11.3% 11.6% 1.7pps
Foreign currency 0.9% 2.9% 6.4% 8.1% 8.6% 2.0pps
Source: BNR, IntelliNews calculations
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