Demand for new loans increases by over one third in Moldova in first quarter of 2019

Chisinau, 7 May /MOLDPRES/ - The volume of new loans provided in the first quarter of 2019 increased by 32.4 per cent against the same period of the year before. This is the biggest rise in the last three years. The pace of increase in new credits is six-fold higher against the one from the first quarter of 2018, when a 5.4-per cent decrease in the demand was recorded, according to data put out by the National Bank of Moldova (BNM).    

BNM’s data also shows that the gross loan portfolio stood at 44 per cent of all assets or 36.5 billion lei, growing by 2.9 per cent during January-March this year.   

The biggest increases of the credit portfolio were registered in loans provided for the purchasing/construction of real estate and consumption loans, as a result of the implementation of the First Home governmental programme, increase in salaries and decrease of the interest rate. At the same time, the National Bank continues to encourage banks and focuses its efforts more on the financing of the real economy. 

The share of bad credits in the credit portfolio dropped insignificantly in the first quarter of 2019. “Yet, it remains high,” respectively, 11.5 per cent of all credits, a BNM analysis on the financial situation in the banking system in the first quarter of this year also shows.   

This share diminished practically at all banks, with the aforementioned index varying between 5.3 per cent up to 28.7 per cent, depending on the financial institution. Banks maintain the tendency of decrease in the share of bad credits out of all credits.