In July 2023, new loans extended1 (Infographic 1) totalled MDL 4,130.4 million, increasing by 0.3% compared to June 2023. The largest share (66.2%) belongs to domestic currency loans, which totalled for MDL 2,733.9 million, decreasing by 1.3% as compared to the previous month.
Infographic 1. Development in new extended loans
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In terms of maturity, loans with maturity ranging from 2 to 5 years recorded the highest demand, having a share of 63.2% in the total amount of extended loans. The share of these loans extended to businesses represented for 41.2% in the total amount of extended loans.
The average nominal interest rate on new domestic currency loans as compared to the previous month decreased by 0.88 percentage points to the value of 11.73%, while the average interest rate on foreign currency loans increased by 0.12 percentage points to the value of 6.48%.
In July 2023, individuals contracted new loans (Infographic 2) in the amount of MDL 1,272.5 million, increasing by 9.7% as compared to the previous month, the largest share (77.9%) representing consumer loans. The largest share of these loans (MDL 852.1 million) was extended in domestic currency with a maturity ranging from 2 to 5 years.
Infographic 2. New loans extended to individuals3
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Mortgage loans represent a share of 21.4% of total loans extended to individuals and was mainly extended in domestic currency (97.6% of total mortgage loans).
The average interest rate on consumer loans extended in domestic currency decreased by 1.06 percentage points to the value of 12.61%, while the average interest rate on domestic currency loans extended for the purchase of residential property decreased by 2.19 percentage points to the value of 9.36%.
Compared to the previous month, in the reporting month businesses requested less loans in domestic currency (-10.7%). The volume of loans in foreign currency increased by 7.5%, while foreign-currency-linked loans4 decreased by 2.1 times.
Non-financial commercial companies contracted the largest share (65.2%) of the new extended loans.
The average interest rate on domestic currency loans extended to businesses (Infographic 3) decreased by 0.58 percentage points, reaching 11.47%. At the same time, the average interest rate on foreign currency loans increased by 0.12 percentage points to the value of 6.45%.
Infographic 3. New loans extended to businesses
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infografic [4]:
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Developments in DEPOSITS markets in July 2023 [5]
Statistical data [6]
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. 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.
3. Aggregate data may not correspond exactly to the sum of the components due to mathematical rounding.
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.