Loading page...

Romanian Business News - ACTMedia :: Services|About us|Contact|RSS RSS

Subscribe|Login

Voinea: 7,000 notifications for debt discharge bill until February 2017 for RON 2 bln loans

170320102557liviu_voinea_605x.jpg

The number of notifications for debt discharge bill reached 7,000 at the end of February 2017 and the value of loans was RON 2 billion, said on Wednesday Liviu Voinea, the vice-governor of National Bank of Romania (BNR), business-review.eu reports.

„Out of these notifications, 99 percent come from individuals. The trend was decreasing starting July. There are 6,000 debtors. In practice, 755 persons notified for more than one credit, „ said Voinea at the conference organized by the European Commission in Romania, according to Agerpres.

According to Voinea, the total value of the notified loans was RON 2 billion and 67 percent of them are in the banks’ balance sheets at the notification moment.

„93 percent are in foreign currency, 40 percent being CHF. Two thirds of these loans are non-performative loans and fully provisoned at the moment of notification issuing. 76 percent of them were given in 2007-2008 period. More than 90 percent of them had an unpaid loan value that was higher than the current value of the guarantee,” said Voinea.

The debt discharge bill was adopted in the first part of 2016 and was enforced on May 13.

The National Bank of Romania (BNR) has set to decrease the rate of bad loans in 2017 to 6 percent from a current 9-10 percent, BNR Vice-Governor Liviu Voinea told the release on Wednesday of a 2017 economic report on Romania. 

"Bad loans continued to fall. The target for bad loans this year is set at 6 percent, which means reaching the European average. On the other hand, Romania is ahead the European average in terms of provisions covering the bad loans. As far as Romania's budget is concerned, no public money should be used to bail out the banking system since 2009," added Voinea. 

He went on to say that there is low inflation in Romania, not deflation, while interest rates are at their historic low. 

"Legislative uncertainty has reduced, with the National Bank having contributed toward that. Banks continued to purge their balance sheets of bad loans, they are well capitalised and contagion risk is receding, while we have rising net international reserves," said Voinea.

More