Borrowers behind on payments represent almost 20 pc of banks' debtorsPublish date: 07-07-2009
The number of borrowers of at least RON 20,000 who are behind on payments rose by 8.07 per cent in May compared to April, exceeding the threshold of 200,000 for the first time, and coming to stand for almost 20 per cent of the banks' total debtors, both individual and corporate borrowers, according to BNR data, Mediafax informs.
The total number of borrowers behind on payments was 200,191 in May, including individual persons and legal entities, the figure being almost the double of the 100,676 debtors at least a day behind on payments registered in May 2008 and 44 per cent larger than the figure reported at the end of 2008, according to Banking Risk Central Office (CRB).
In May 2008, the number of borrowers behind on payments exceeded the threshold of 100,000 for the first time ever since CRB data had become available in January 2000. The total represented 10.7 per cent of all bank debtors. In December 2008, 13.5 per cent of debtors were behind on payments.
In May 2008 - May 2009, the number of debtors grew at a pace a lot lower than the pace of growth of the reported number of borrowers behind on payments. The number of debtors came to a maximum of 1.04 M in September 2008. Afterwards it began to fluctuate, the general trend being however decreasing. The debtors who had borrowed over RON 20,000 totalled 1.008 M in May 2009, 8.07 per cent more than in May 2008, but 1.83 fewer than at the end of 2008. The total of overdue payments was RON 5.753 bn in May, 7.6 per cent more than April, 73 per cent more than in December 2008 and two and a half times bigger than the one in May 2008.
The weight of overdue amounts in the total balance grew gradually from 1.47 per cent in December to 2.35 per cent in April and to 2.55 per cent in May. The weight of overdue payments in the total balance was 1.18 per cent in May 2008. Bank given loans and commitments totalled RON 250.42 bn in May, 0.6 per cent less than in April and 1.3 per cent less than December, but 11.6 per cent more than May 2008.
The weight of overdue payments on loans to individual customers has grown this year from one per cent in December 2008 to nearly 1.6 per cent at the end of June, without reaching an 'alarming' level yet, says Credit Office Director General, Serban Epure. On the other hand, the number of interrogations of the Credit Office database by banks was 401,000 in June, 42 per cent less than in June 2008 when a total of 697,000 inquiries had been registered. The number of credit reports mad by banks to the Credit office in view of awarding a retail loan was 331,000 in June, down from 347,000 interrogations in May. The total number of credit reports generated by the Credit Office was 439,000 in May, 91,000 of them being for monitoring purposes. Epure said some banks need monitoring reports more often, as they help them reschedule a loan or collect overdue payments.
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