BNR: Seniors and Romanians are paying off their debts, but companies are borrowing dangerously

The National Bank of Romania (BNR) is flagging a contradictory trend within the banking system: while citizens, including seniors and pensioners, are managing their debts more responsibly, the business sector is grappling with a non-performing loan crisis.

Data presented by BNR official Cristian Popa shows that the number of Romanians with overdue debts has fallen sharply over the past year. The number of individuals with non-performing loans has reached 126,800 — more than 30,000 fewer than in September 2024. This improvement is most visible in consumer credit, where the number of borrowers in arrears has dropped from 200,000 to 158,000.

Pensioners and seniors taking a more cautious approach to money

The decline in the number of troubled borrowers suggests that Romanians, including older people living on fixed pension incomes, have become more careful about managing their finances. In the mortgage segment, the situation remains stable, with only a slight increase in overdue amounts to 1.76 billion RON, but with fewer borrowers in difficulty.

This growing financial caution among the general population may be linked to lessons learnt during previous crises and to more careful spending planning — factors that are particularly significant for seniors on limited incomes.

Companies in financial difficulty

By contrast, the corporate sector is going through a difficult period. The number of companies with non-performing loans rose from 8,700 to 11,200 in just one year, and the value of these troubled debts surged by over 40%, reaching 10.9 billion RON.

This rapid deterioration in the financial position of businesses may have an indirect impact on seniors, by reducing employment opportunities for their family members or by lowering the quality of care and support services provided by private companies.

Banks outsourced non-performing loans worth 351.6 million RON to debt recovery firms in the first nine months of the year — more than 50% above the figure for the whole of 2024 — signalling the mounting pressure within the system to recover outstanding debts.