In January 2024, new loans extended1 (Infographic 1) totalled MDL 3,718.4 million, decreasing by 32.1% compared to December 2023. The largest share (73.1%) represents domestic currency loans, which totalled MDL 2,718.1 million, decreasing by 33.3% as compared to the previous month.
Infographic 1. Development in new extended loans2
In terms of maturity, loans with maturity ranging from 2 to 5 years recorded the highest demand, having a share of 56.2% in the total amount of extended loans. The share of these loans extended to businesses represented 38.5% of the total amount of extended loans.
The average nominal interest rate on new domestic currency loans as compared to the previous month decreased by 0.25 percentage points to the value of 9.97%, while the average interest rate on foreign currency loans decreased by 0.21 percentage points to the value of 6.59%.
In January 2024, individuals contracted new loans in total amount of MDL 1,079.3 million, decreasing by 14.1% as compared to the previous month, the largest share (66.9%) representing consumer loans (Infographic 2). The largest part of these loans (MDL 624.1 million) was extended in domestic currency with a maturity ranging from 2 to 5 years.
Infographic 2. New loans extended to individuals3
A share of 32.7% of total loans extended to individuals represent to mortgage loans, which were mainly extended in domestic currency (100.0% of all mortgage loans).
The average interest rate on consumer loans extended in domestic currency decreased by 0.11 percentage points to the value of 12.01%, while the average interest rate on domestic currency loans extended for the purchase of residential property decreased by 0.12 percentage points to the value of 8.60%.
Compared to the previous month (Infographic 3), in the reporting month businesses requested less loans in domestic currency (-42.1%), as well as in foreign currency (-27.7%) and in foreign-currency-linked loans4 (-47.8%).
Non-financial commercial companies contracted the largest share (67.6%) of new extended loans.
The average interest rate on domestic currency loans extended to businesses decreased by 0.54 percentage points, reaching 9.26%. At the same time, the average interest rate on foreign currency loans decreased by 0.20 percentage points to the value of 6.59%.
Infographic 3. New loans extended to businesses
infografic:
Developments in DEPOSITS markets in January 2024
Statistical data
Instruction on the compilation and submission of reports on interest rates applied by the banks in the Republic of Moldova, approved by the DEB of the NBM No 331 of 01.12.2016
1. Data presented according to Instruction on preparation and presentation of reports on interest rates applied by banks in the Republic of Moldova, approved by Decision of the Executive Board of the NBM No 331 of 1 December 2016, Official Monitor of the Republic of Moldova No 441-451 of 16 December 2016, as subsequently amended and supplemented.
2. Aggregate data may not correspond exactly to the sum of the components due to mathematical rounding.
3. Individuals performing an activity, in accordance with the Instruction on completion by licensed banks of the Report on monetary statistics, approved by the Decision of the Executive Board of the NBM No 255 of 17 November 2011, Official Monitor of the Republic of Moldova No 206-215 of 2 January 2011, as subsequently amended and supplemented, work in associations without legal personality and are producers of goods and/or services for market, and namely, individual enterprises, farms, entrepreneur license holders, notaries, lawyers, bailiffs, etc.
4. Loans foreign-currency-linked, according to the Regulation on the open currency position of the bank, approved by Decision of the Council of Administration of the National Bank of Moldova No 126 of 28.11.1997, Official Monitor of the Republic of Moldova No 112-114/198 of 14.10.1999, with further modifications and completions, refer to the assets which balance, according to the conditions established in the relevant contracts concluded by the bank, shall be modified depending on the evolution of the exchange rate of Moldovan currency against the attached exchange rate.
