BNR plans to cut NPLs rate to 6 pc

National Bank of Romania (BNR) has set a target of 6 percent for bad loans this year, given that, currently, the percentage is between 9-10 percent, Liviu Voinea, central bank Deputy Governor stated, during a press conference dedicated to the Country Report on Romania 2017.

“NPLs continued to decline. This year there is the target of 6 percent for bad loans, meaning to reach the European average. However, we are above the European average as regards the provision coverage degree of these loans. In terms of budget, Romania should not use public money for the banking sector these years, starting with 2009,” Voinea stated.

According to him, Romania has low inflation, not deflation, and the interest rates are at historic lows.

“The legal uncertainty has been reduced and BNR has contributed to this. Banks have continued cleaning the NPLs’ balance sheets; they are capitalized, while the contagion risk is declining and we have growing net international reserves,” central bank official said.

He also announced that the number of notifications following debt discharge law reached 7,000 at end-February 2017 and loans value was RON 2 billion. 99 percent of the notifications come from individuals. However, the trend was decreasing as of July.

bad loansCountry Report on Romania 2017debt discharge lawdeflationdeputy governorhistoric lowsinterest ratesLiviu Voinealow inflationNational Bank of Romania (BNR)notificationsNPL rate
Comments (0)
Add Comment