NBR: Population short on money for new credits

The population’s demand for credits could decline in the coming period, after individual clients already experienced liquidity constraints, while optimism regarding future increases in income has dissipated, believe NBR (National Bank of Romania) analysts, in the Report on inflation for the first quarter of the year. “A clue as to potential liquidity constraints for the population is the slowdown, since December, of the real annual rise of bank deposits for individuals,” say NBR analysts. According to the data recently published by the central bank, the annual growth of the population’s RON-denominated deposits (in real terms) saw a major slowdown, and fell from 41% in December to just 27% in March. Foreign currency deposits experienced a slowdown, as well, although to a lesser degree. The increase in euros was down from 46% in December to 41% in March.