After a continuous fall of over three years, the lending process at commercial banks started to slightly recover owing to the increase in the volume of loans raised by private individuals and farmers, stated expert of the Institute for Development and Social Initiative “Viitorul” Veaceslav Ionita.
In an article that is quoted by IPN, the expert says the volume of loans in August exceeded the level of 2017. This shows that after a decline of over three years, the process started to recover in 2018. Owing to the fact that lending to private individuals increases faster than anticipated, the volume of loans released in the banking system at the end of this year will most probably exceed 35.2 billion lei. It is thus expected that the decline of the last two years will be remedied this year, but it is yet a lot up to the level of 2014.
The share of loans provided by banks to private individuals rose from 11.3% in 2014 to 26.9% in August 2018.
According to the expert, the 1.7 bn lei rise in the volume of loans this year is due to the increase in the volume of loans provided to persons. Almost 70% of this rise occurred in the summer of this year, when the volume of loans grew by 1.15 billion lei.
The consumption loans grew in volume by 700 million lei, the loans released in the real estate by 590 million lei, in agriculture by 391 million lei. Together these loans ensured a rise of almost 1.7 billion lei.
