Almost half of high-value loans are euro-denominated ones, according to the data released by the Credit Information Bureau (CIB), the body within NBR collecting information on exposures of more than 20,000 RON (6,000 euros).
At the end of last year, large loans granted in euros totalled 15 billion euros (50.96 billion RON), accounting for 49.4% in overall financing.
During 2006, the volume of loans worth more than 20,000 RON increased by 57%, to 103 billion RON (30.47bn euros). These exposures account for 79.9% in the total loans granted by the banking system, according to the data provided by CIB.
In terms of non-governmental lending, the domestic currency held a dominant position, with 53% of loans being RON-denominated.
The share of euro-denominated loans contracted last year in the total decreased, as they were slower to progress than the average. In December, they accounted for one percentage point less than they did at the end of 2005.
The fastest expansion rate was registered by RON-denominated loans. Their volume soared by 85%, to 44.7 billion RON (the equivalent of 13.2 billion euros). Therefore, the share of RON-denominated loans in the total increased by a little more than six percentage points, to 43%.
The expansion of RON-denominated loans was supported by the NBR, which took a series of steps to contain the appetite for foreign currency financing. Beside raising minimum reserves for foreign currency, the central bank in the autumn of 2005 also introduced a ceiling for this type of financing; three times the level of a bankes equity capitals. The decision had an almost immediate impact, with the volume of foreign currency loans advancing at a visibly slower rate.
This move was, however, particularly prompted by the "export" of these loans from the balance sheets of domestic banks to the foreign entities of the groups they are part of. The NBR dropped this measure early this year. As a result, it is not clear whether the RON will gain any further ground in 2007.
The dollar was the currency that lost ground last year - its share of the total fell to 6.5%, almost half the level reached at the end of 2005.
This occurred as the volume of dollar-denominated loans decreased by over 20% in 2006, to the equivalent of 6.6 billion RON (1.9 billion euros). This was, however, the third year in a row when the volume of dollar-denominated loans fell.
Last year also brought an increase in the volume of loans included in the category of "Other currencies", with the volume reaching the equivalent of 730 million RON (216 million euros) in December, from 95 million RON at the end of 2005. The share of this category therefore increased, rising from 0.1% to almost 0.8%.
This occurred as several banks last year introduced financing alternatives in Swiss francs and even Japanese yens.
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