Corporate loans increased in June for the first time in years more than household loans

The balance of non-government credit extended by credit institutions increased 1.4 percent in June 2018 (1.4 percent in real terms) as compared to May 2018, up to the level of RON 242.45 billion, according to data of the National Bank of Romania (BNR). But while the credit for households went up by 1 percent compared to the previous month, the loans for companies increased by 1.7 percent, signaling a modification in the corporate credit trend.

In May 2018, non-government credit climbed 0.3 percent versus April.

The credit in RON increased by 1.9 percent (1.9 percent in real terms) in June compared to May, as loans to households rose by 1.9 percent to RON 88.86 billion, and those granted to other sectors recorded an advance of 2 percent to RON 68.83 billion. On total, non-government credit in national currency was RON 157.7 billion in June. On the other hand, the RON-denominated credit increased by 0.4 percent (expressed in EUR, the foreign currency credit increased by 0.1 percent) in June compared to May, amid a 1 percent decrease in the loans granted of households (RON 39.42 billion), but also by a 1.6 percent increase for other sectors (RON 45.32 billion).

Compared to June last year, non-government credit grew by 6.8 percent (1.3 percent in real terms) on June 30, 2018, due to the 15.3 percent increase in the RON component (9.4 percent in real terms) and a 6.2 percent decrease in the foreign currency component expressed in RON (expressed in EUR, the foreign currency credit decreased by 8.3 percent). Loans to households grew by 22.13 percent compared to June 2017, while corporate loans increased by 7.6 percent. Loans to households grew by 22.8 percent compared to May 2017, while corporate loans rose by 8.5 percent.

As for non-government credit in foreign currency, the loans to households decreased by 10.1 percent and those for corporations by 2.4 percent. On the other hand, government credit declined in June 2018 by 3 percent compared to May 2018 to RON 98.13 billion. On 30 June 2018, government credit rose 1.4 percent (-3.8 percent in real terms) as compared to June 30, 2017.

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Increase in deposits

Deposits of non-governmental clients grew by 1.4 percent in June 2018 compared to May 2018 up to RON 312.9 billion, while compared to June 2017 it increased by 12.4 percent or with 6.6 percent in real terms, according to the National Bank of Romania (BNR) data. In May, deposits of non-governmental resident residents grew by 0.5 percent in May 2018 compared to April.

RON deposits of households increased by 1 percent, to RON 114.4 billion, and recorded a 6.9 percent increase (1.4 percent in real terms) as compared to June 30, 2017. RON deposits of other sectors (non-financial corporations and non-monetary financial institutions) increased by 0.5 percent to RON 94.9 billion. On June 30, 2018, RON-denominated deposits of other sectors increased by 14.6 percent (8.7 percent in real terms) as compared to June 30, 2017.

Currency deposits of residents, expressed in ROL, increased by 2.6 percent compared to May 2018 to RON 103,5 billion (expressed in EUR, foreign currency deposits increased by 2.3 percent, up to EUR 22.2 billion). Compared to the same month of the previous year, the foreign currency deposits of residents denominated in RON increased by 17 percent (expressed in EUR, foreign currency deposits of residents increased by 14.4 percent).

As of June 30, 2018, household forex deposits, expressed in RON, recorded a 2.8 percent growth (2.8 percent in real terms) as against May 2018 (expressed in EUR, households’ increased by 2.6 percent). Compared to the similar period of 2017, household forex deposits expressed in RON increased by 18.9 percent (expressed in EUR, households’ forex deposits increased by 16.1 percent).

According to BNR data, foreign currency deposits of other sectors (non-financial corporations and non-monetary financial institutions), expressed in RON, recorded a 1.9 percent increase (1.9 percent in real terms) as compared to May 2018 (expressed in EUR , foreign currency deposits of other sectors increased by 1.7 percent).