Loans to farmers saw biggest growth in first half-year

29.08.2023 13:48
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In the first half of this year, loans granted to agriculture saw the biggest increase compared to other loans, by 341.6 million lei, to a total of 4.8 billion lei. Loans granted to individual entrepreneurs also rose, by 237.3 million lei, to a total of 1.9 billion lei.

According to the National Bank of Moldova, at the end of June, the gross balance (prudential) of credits in the banking sector amounted to 62 billion lei, increasing during the analyzed period by 0.6% (360.4 million lei).

Increases were also recorded in loans granted to the non-banking financial sector, by 217.0 million lei, to 2.7 billion lei; in consumer loans, by 198 million lei, to 10.2 billion lei; and in loans granted to the services sector, by 167.3 million lei, up to 2.5 billion lei.

At the same time, the largest decreases were recorded in credits granted to trade - by 357 million lei, to 13.5 billion lei; to the food industry, by 244.0 million lei, to 4.2 billion lei; and to the energy industry, by 174.1 million lei, to 0.8 billion lei.

According to the NBM, during the reference period, the share of non-performing loans (substandard, doubtful and compromised) in total loans increased by 0.7 percentage points, constituting 7.1% as of June 30, with the metric ranging from 0.1 % to 8.9% depending on the bank. At the same time, non-performing loans in absolute value increased by 11.1% (438.9 million lei) to 4.4 billion lei.

Also, during the analyzed period, expired loans increased by 12.2% (245.1 million lei) to 2.3 billion lei. The share of expired loans in total loans was 3.6%, increasing by 0.3 point compared to December 31, 2022, ranging from 0.1% to 6.7% depending on the bank.

In the reference period, the total balance of deposits increased by 11.6 billion lei or by 12.2%, to 106.6 billion lei. The deposits of natural persons constituted 60% of the total deposits, the deposits of legal persons – 39.7% and the deposits of banks – 0.3%. Of the total deposits, 64.1% were deposits in lei, the balance increased by 11.3 billion lei (19.8%) compared to the end of the previous year and amounted to 68.3 billion lei as of June 30, 2023.