Some 180,000 individuals in arrears

Total overdue loans accumulated by individuals up until the end of December amounted to 47 million euros, 3.6 times more than in the previous year, in line with data released by the Credit Bureau.

Denominated in RON, the volume of overdue sums in December reached 172 million RON. Meanwhile, the number of participants reporting arrears in the system rose, partly as a result of the entrance of some non-banking financial companies and leasing firms.

The most important contribution to this expansion was that of arrears accumulated with regard to RON loans, totalling 152 million RON (41.3 million euros), 230% higher than the previous year.

In terms of absolute volume, the increase accounted for about 106 million RON (28 million euros).

However, arrears linked to euro loans were the most dynamic, going up by four times, to 4.2 million euros. The lowest expansion was registered by arrears linked to dollar loans, which advanced by a mere 75%, to 1.3 million dollars (a little above one million euros). The number of persons registered with current arrears posted a slight increase, of just over 10%, to 180,000 persons. This contrasts both with the increase in volumes, and with the number of loans registering payment delays. At the end of December, a number of 229,000 overdue loans were reported, almost three times more than in the previous year.

The rapid expansion of lending to the population was thus not without repercussions, considering arrears advanced at an accelerated pace. Nevertheless, banks say they are not having any problems with customers that are late in paying back loans.

Consumer lending continues to generate the highest overdue debts, in comparison to mortgages. Thus, arrears related to consumer loans total 147 million RON (namely 85% of the total), with arrears related to credit card debt trailing way behind in second place, with 17 million RON.

Overdue debts linked to real estate loans and mortgages stand at 3 million RON. A similar situation exists in terms of the number of accounts, with consumer loans accounting for 85% of overdue debts.

In January, the Credit Bureau system admitted another two participants, a commercial bank and a non-banking financial company. Thus, 21 banks, four non-banking financial companies and two leasing firms are sending information to the Bureau database. Another two insurance companies have signed participation contracts and are making the necessary moves for integration into the system.

“We are now covering 95% of the banking market and hold a similar percentage on the non-banking financial companies market, considering the four participant companies are among the major players,” says Serban Epure, general manager of the Credit Bureau.