Share of credits provided to private persons exceeds 40 per cent of all loans in Moldova

Chisinau, 26 June /MOLDPRES/ - The loans provided by the financial system to private people have exceeded 40 per cent of all portfolio of loans for the first time ever, which is almost thrice more than before the banking crisis from 2014, when the share of private persons stood at 14-15 per cent. Economic expert Veaceslav Ionita unveiled data to this effect.    

Thus, in May 2019, the degree of indebtness of private people amounted to up to 19.1 million lei (more than 950 million euros), which is by 1.5 billion lei more than in early this year. The expert noted that “till the end of this year, the indebtness of households most likely will exceed 22 billion lei, which is twice more against three years ago and six-fold more than ten years ago.”       

„In 2019, according to our estimations, the degree of indebtness of households for the first time ever will exceed ten per cent of the Gross Domestic Product (GDP) and will reach a share of 10.5 per cent. Fifteen years ago, the degree of indebtness of households related to GDP was four-fold smaller and stood at about 2.5 per cent,” Ionita said. Nevertheless, according to this index, Moldova is much under the European average, where the indebtness of households is of 56 per cent of the GDP and much under the regional average size, where this index varies between 15 and 20 per cent of the GDP.   

At the same time, even if the crediting of private people continues to increase, nevertheless, the pace of growth slowed down, due to the fact that, in 2019, the crediting of legal entities was re-launched too, Veaceslav Ionita noted. Thus, since the beginning of this year, the portfolio of loans from the financial system has increased by 2.3 billion lei, of which 1.5 billion lei represent credits provided to private persons and 0.8 billion lei – credits to legal entities.     

As much as 11.6 billion lei out of the overall portfolio of loans of 19.1 billion lei, provided to private people, or 60.7 per cent, belongs to the banking sector and 7.5 billion lei or 39.3 per cent – to the non-banking sector.