Overdue loans up to 3.8bn euros in February

Overdue instalment payments for loans contracted by individuals and companies rose by 3.8% in February, to 16.2bn lei (3.8bn euros), double the early 2010 level, according to NBR data.

The loan portfolio deterioration pace is similar with the one registered in the first month of the year.

Bankers are still having problems with bad payers though the unemployment rate has been declining for over a year and companies’ revenues have resumed growth. High unemployment and companies’ plunging turnovers were the main factors that led to soaring payment delays in the past two years.

“The main explanation for the still rising overdue payments is the delayed reflection in the economy of the positive signals regarding unemployment and salaries that have emerged lately. February still reflected last year’s situation, when the economy was still in recession,” explained financial analyst Aurelian Dochia.

The weight of overdue instalments in February climbed to 6.9% of total sums owed by banks’ clients, from 6.6% in January and 4.2% in the similar period of last year.