Dragulin, NBR: High indebtedness, the problem with foreign currency loans

The high amounts that customers - both individuals and companies borrowed in foreign currency and the much longer repayment periods compared with RON loans are the main problem, even more important than the difficulties caused by the depreciation of the exchange rate and the rise in interest rates, says Ion Dragulin, head of NBR's Financial Stability Department.
"Indebtedness in foreign currency was greater, as allowed by the better financial performance of the clients and by the longer maturity, which, however, led to prolonged risks," Dragulin warns. A loan in foreign currency to individuals is 12 times higher than a loan in RON on the average, while in case of companies the ratio is 4 to 1.