Companies and their clients chose deposits instead of loans in H1

The volume of bank loans granted to individuals and companies dropped in June for the fourth month in a row, by 0.5 percent month-on-month, to RON 198.06 billion (€47.1 bln), with the annual growth rate sliding to 11.2 percent, in nominal terms, from 15.9 percent in May, according to data provided by the National Bank of Romania (BNR), quoted by the NewsIn agency.

In real terms, (considering inflation), bank loans fell 0.7 percent in June from May, while the increase between June 2008-June 2009 was of a mere five percent, according to data published by the central bank.

On the other hand, lei and foreign currency-denominated deposits of individuals and companies in Romania continued their upward trend in June, soaring 1.7 percent from May, to RON 158.04 bln (€37.6 bln), BNR announced. However, the annual growth rate of the value of deposits attracted by banks declined to 12.3 percent in June from 13.1 percent in May. Lei-denominated deposits rose 9.7 percent in June year-on-year, according to BNR.