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Non-government loans fail to recover: annual decline deepens to 8.2%

23.02.2010, 20:02 8

Banks did not showsigns of seeking to resume lending, with the volume ofnon-government loans falling by almost two percent against the endof 2009, whilst savings of the population and of companies arestarting to weaken. Only governmental loans climbed in January, byalmost 6%, against the end of December.

The volume of loansgranted to the population and to companies fell by 8.2% in realterms at the end of January compared with the similar period oflast year, to 199.3 billion, whilst solvent demand remains low, andbanks are still cautious amid a deterioration of the creditportfolio, according to data from the NBR (National Bank ofRomania). The decline in real terms against December amounts to1.9%. RON-denominated loans fell by 8.9% in the last year, whileeuro-denominated loans saw a slight rise, by 0.7%. Only companiesincreased their volume of loans, whilst the population continues tocut its debts to banks.

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