The Romanian currency accounts for an increasingly low share inthe volume of credits granted, down from 44% to 40% in the lastyear, according to data from the National Bank (NBR).
The volume of loans granted in the Romanian currency fell by fivebillion RON in a year's time, to 80 billion RON in September thisyear, which means the value of new loans granted in RON did notcover the value of repayments.
The NBR notes in the release of the Board of Directors on Tuesday'sdecision to keep its monetary policy interest rate at 8% that loansgranted in RON underwent a significant decline.
"Loans granted to the private sector, especially those granted inthe national currency, recorded a decline," reads therelease.
Foreign currency loans account for 60% of the overallnon-government lending in September 2009, as opposed to 56% a yearbefore. The volume of loans in foreign currency went up by over 10billion RON in the past year, to 120 billion RON in September.However, analysts say a large part of the rise in the volume offoreign currency loans is "artificial", being determined by therise in the exchange rate by over 15% in the last year. The NBRreports all data in RON.
The increased share of loans granted in RON and, implicitly, thedecline in that of foreign currency loans in the last 12 months isa trend characteristic both of individual clients and of corporateclients.
The share of loans granted to the population in RON was down from42.6% in September last year to 39.5% in September this year. Theshare of loans granted in RON to companies fell from 45% to40.7%.
High interests on RON-denominated loans, coupled with a decline indemand from clients froze new loans this year.
"The lending reboot has yet to occur because there is no demandfrom either companies or individuals, with a vicious circle createdaround lending and the resumption of economic growth," analystAurelian Dochia says.
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