The ability of the population to pay their installments at the banks registered a slight deterioration, according to the Stability Report, published on Wednesday by the National Bank of Romania (BNR). “This evolution was manifested against the background of the increase in monthly rates as a result of the increase in interest only partially counterbalanced by salary increases”, the Report states. The central bank also says that loans in foreign currency have a rate of non-performing loans twice as high as that recorded in the case of loans in lei. A distinct category of borrowers is subject to closer monitoring, meaning those who postponed the payment of installments based on the moratoriums introduced as a result of the outbreak of the COVID-19 pandemic. “It has been proven that these debtors encounter difficulties in terms of honoring the debt service after the moratoriums expire and record a rate of non-performing loans almost 5 times higher, and the volume of non-performing loans related to this category of debtors represents about 14 percent of the total non-performing exposures , although, compared to the total, these credits represent only 4 percent”, the Report states. The debtors who have postponed the payment of installments based on the moratoriums fall into the category of the riskiest debtors, having an average level of indebtedness at the time of granting well above the prudential limit, i.e. around 57 percent. Vulnerable debtors, defined as those debtors with a debt-to-equity ratio of over 45 percent, register the highest proportion in the case of secured consumer loans (42 percent) and First Home/New Home loans (41 percent, September 2023). On the one hand, the ability of borrowers to recover financially among those who recorded delays of more than 90 days in paying installments a year ago (September 2022), has deteriorated in the recent period. Only 3.5 percent of loans more than 90 days in arrears in September 2022 returned to paying installments in less than 3 months, down from 2019, while 83 percent of them remained in the category of non-performance (with delays of more than 90 days). For the next 12 months, a slight increase in the probability of default is estimated, both for mortgage loans and in the case of consumer loans.
Two Romanians were arrested during Sunday night, May 11, after robbing empty houses in the evacuated mountain village of Brienz located in the Swiss canton of Graubünden. The village had been evacuated since November due to rock falls. The locality was, however, monitored by the authorities to prevent break-ins. The would-be thieves apparently tried to […]
The European Bank for Reconstruction and Development, or EBRD, has revised its estimates regarding the evolution of the Romanian economy in 2025 downward to 1.6%. The bank expects Romania’s GDP to grow 0.2% less than the 1.8% estimate made in February, and to increase by 2.4% in 2026. Romania's GDP growth slowed to 0.8% in […]
During a meeting on Monday, May 12, the Cluj-Napoca Local Council approved a draft resolution that imposes smoking restrictions in several public spaces in the city, including public transport stations, parks, and sports facilities. The resolution was adopted with 22 votes in favor and 3 abstentions, and will come into effect 90 days from the […]
An internal survey by Romanian Business Leaders, which does not have national representativeness but was answered by 417 entrepreneurs, shows that 62% of entrepreneurs expect to have to make layoffs, while a third expect the number of employees to remain the same. The expected layoffs are directly connected to the possibility of Romania choosing a […]
Romanian Istvan Kovacs will be the main referee for the UEFA Champions League final between Paris St-Germain and Inter Milan, which will be played on May 31 in Munich. The match will be Kovacs’ third European final in the last 4 years. The 40-year-old referee has previously officiated the UEFA Europa Conference League final in […]
Over 70 museums across Romania will open their doors after hours for the 21st edition of Night of Museums, one of the country's most anticipated cultural events. Held on the night of May 17, the event offers visitors a unique opportunity to explore exhibitions, installations, and creative activities in an unconventional, late-night setting. From major […]
