The residential sector has proven its resilience during the pandemic and housing accounts for 69% (over €20 billion) of the loans granted to Romanians, according to a report by the National Bank of Romania (BNR).
The report, which covers 2020, points out that state-guaranteed loans granted through the First Home program have a significant share in the total loan volumes.
First Home loans represented 21% of new mortgage loans granted in the past 12 months. The scheme helps people to climb the property ladder by acquiring their first home.
The loan-to-value level of mortgage loans, excluding Prima Casa, stood at a median of 78% at the end of last year. This means that fewer debtors would not be able to repay their loans in case of a crisis.
Banks’ exposure in the commercial real estate market had a share of 59% of all loans granted to non-financial companies by the end of 2020.
The report further shows that the rate of non-performing loans in the real estate and construction field fell last year to 6.3%.
