The loan portfolios of leasing and consumer finance companiesdropped by over 3bn RON (around 720m euros) this year, to 31,5bnRON in late October, considering new loans did not keep up withrepayments, NBR data reveal.
Consumer loan sales have plummeted over the past two years amidclients' reluctance to take out loans, and in parallel the value ofnew funding released by leasing companies has declined four timesin the past two years from the 4bn-euro peak reached in 2007.
In the first nine months of 2010, the value of funding released byleasing companies came in at 780 euros, down 27% from a year ago,according to the data provided by the Association of FinancialCompanies (ALB).
Moreover, leasing firms repossessed tens of cars and equipment frombad payers, meaning the respective contracts were closed and are nolonger included in statistical data.
Companies are the main clients of non-bank financial institutions(NBFI), with the value of funding granted to them topping 28bn RONin late October, accounting for 90% in the total portfolio.
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